(MENAFN - Saudi Press Agency) Global markets were steady Wednesday as the pressure on Spanish bonds eased after a leading European central banker suggested the continent's bailout fund could be reformed to give it more financial firepower, AP reported.
Markets have been rattled over the past few days by fears that Spain, the eurozone's fourth-largest economy, could need a bailout along the lines of Greece, Ireland and Portugal.
Following three days of market losses, some investors returned to buy beaten-up stocks, though downbeat economic data and underwhelming earnings from Apple kept sentiment in check.
Sentiment was given a bit of a boost by a suggestion from European Central Bank policymaker Ewald Nowotny that the European Stability Mechanism, the eurozone's planned permanent bailout fund, could be given a banking license. That would give it the ability to borrow money from the ECB, increasing its financial resources.
Vassili Serebriakov, an analyst at Wells Fargo Bank, said such a move would be of particular significance for Spain and Italy as the current bailout fund does not have enough money to rescue them both.