In Spain, a report from rating agency Fitch provided further reassurance that the property market is stabilising. Prices are set to remain at 40% lower than at their peak before the crisis, but news that the market may have bottomed out will be welcome. The agency went on to note that the future trajectory of the housing market depends largely on credit availability and the country’s employment situation.
In similarly positive news, research by BBVA has claimed that the economy will grow by 2.7% this year, buoyed by increased spending as a result of low oil prices. The analysis went on to state that the consequent increase in demand will result in the creation of one million new jobs, which will see the unemployment rate drop to 20.9% in 2016.
Talks between Greece and euro zone finance ministers broke down on Wednesday evening without agreement. Monday has been set as possible deadline at which Greece’s financing needs would be resolved, yet last night’s talks appear to have merely heightened the strain between the parties. However, Standard & Poors assessment yesterday that a “Grexit” did not pose a huge threat to the region may calm investors.
The Ibex 35 was up (0.19%) at 10,384.50. The euro was trading at USD 1.1341.