Tweet
29 November 2010
Last updated at 05:58 ET
The euro was steady against the dollar as markets opened a day after European ministers agreed a bail-out for the Irish Republic.
Ministers have reached an agreement over a bail-out worth about 85bn euros ($113bn; £72bn).
The deal will see 35bn euros go towards propping up the Irish banking system, with the remaining 50bn euros to help the government's day-to-day spending.
In morning trade on Monday the euro was down by 0.30% at $1.3200.
It had earlier slipped to $1.3181, its lowest level since 21 September, before rebounding and then slipping back again.
European stocks were also largely unchanged, with London's FTSE down 0.15% at 5,660, Frankfurt's Dax down by 0.66% at 6,803 and Paris's Cac 40 down by 0.82% to 3,698.
But Irish bank shares rose, with Allied Irish Banks up 7.58% and Bank of Ireland up 18.35%.
Continue reading the main story Meanwhile, yields on ten-year bonds in the Republic of Ireland, Portugal, Spain, Greece, Belgium and Italy were largely unchanged, as reaction to the bail-out was largely muted.
The high rates of return on the government bonds means some market doubt may remain about the bail-out.
"Bond prices have not reacted to the news, so this is not in any way a 'in one leap they were free' type of deal," said the BBC's business editor Robert Peston.
However, the price of oil rose to a two-week high above $85 a barrel, with US crude up $1.27, or 1.5%, to $85.03. Brent crude rose $1.08 to $86.66.
Meanwhile, European Central Bank policymaker Christian Noyer sought to bolster market confidence in the eurozone's rescue for the Republic.
'Amount is sufficient' Mr Noyer is the first member of the ECB's policy council to speak after eurozone ministers sealed the deal for Dublin on Sunday.
He said he was confident the deal would bring down Dublin's borrowing costs to more normal levels.
"There is no reason to doubt the recovery plans of the two countries," Mr Noyer said in a speech in Tokyo, referring to the Republic of Ireland and Greece.
And French Finance Minister Christine Lagarde said the bail-out was "sufficient" and that "irrational" markets were not correctly pricing the sovereign debt situation in Europe.
"The amount [of the bail-out] is sufficient because that will keep Ireland afloat for three years," she told RTL radio.
'Best available deal' France and Germany have also said the Republic of Ireland bail-out should draw a line under its debt crisis.
And they have expressed confidence in Portugal's ability to correct its finances and avoid needing outside help.
Please turn on JavaScript. Media requires JavaScript to play.
Jean-Claude Juncker: "Ministers unanimously endorsed the measures"
An average interest rate of 5.8% will be payable on the loans, above the 5.2% paid by Greece for its bail-out.
Irish Prime Minister Brian Cowen said it was the "best available deal for Ireland".
It provides "vital time and space to successfully and conclusively address the problems we've been dealing with since the financial crisis began", he said.
He also said the country would take 10bn euros immediately to boost the capital reserves of its state-backed banks.
Another 25bn would remain in reserve, earmarked for the banks.
The Irish government has also said that interest payments on all state debt will account for more than 20% of tax revenues in 2014.
The deal does not require the Republic to change its low 12.5% corporation tax.
Powered by WizardRSS | Best Membership Site Software
Ministers have reached an agreement over a bail-out worth about 85bn euros ($113bn; £72bn).
The deal will see 35bn euros go towards propping up the Irish banking system, with the remaining 50bn euros to help the government's day-to-day spending.
In morning trade on Monday the euro was down by 0.30% at $1.3200.
It had earlier slipped to $1.3181, its lowest level since 21 September, before rebounding and then slipping back again.
European stocks were also largely unchanged, with London's FTSE down 0.15% at 5,660, Frankfurt's Dax down by 0.66% at 6,803 and Paris's Cac 40 down by 0.82% to 3,698.
But Irish bank shares rose, with Allied Irish Banks up 7.58% and Bank of Ireland up 18.35%.
Continue reading the main story Meanwhile, yields on ten-year bonds in the Republic of Ireland, Portugal, Spain, Greece, Belgium and Italy were largely unchanged, as reaction to the bail-out was largely muted.
The high rates of return on the government bonds means some market doubt may remain about the bail-out.
"Bond prices have not reacted to the news, so this is not in any way a 'in one leap they were free' type of deal," said the BBC's business editor Robert Peston.
However, the price of oil rose to a two-week high above $85 a barrel, with US crude up $1.27, or 1.5%, to $85.03. Brent crude rose $1.08 to $86.66.
Meanwhile, European Central Bank policymaker Christian Noyer sought to bolster market confidence in the eurozone's rescue for the Republic.
'Amount is sufficient' Mr Noyer is the first member of the ECB's policy council to speak after eurozone ministers sealed the deal for Dublin on Sunday.
He said he was confident the deal would bring down Dublin's borrowing costs to more normal levels.
"There is no reason to doubt the recovery plans of the two countries," Mr Noyer said in a speech in Tokyo, referring to the Republic of Ireland and Greece.
And French Finance Minister Christine Lagarde said the bail-out was "sufficient" and that "irrational" markets were not correctly pricing the sovereign debt situation in Europe.
"The amount [of the bail-out] is sufficient because that will keep Ireland afloat for three years," she told RTL radio.
'Best available deal' France and Germany have also said the Republic of Ireland bail-out should draw a line under its debt crisis.
And they have expressed confidence in Portugal's ability to correct its finances and avoid needing outside help.
Please turn on JavaScript. Media requires JavaScript to play.Jean-Claude Juncker: "Ministers unanimously endorsed the measures"
An average interest rate of 5.8% will be payable on the loans, above the 5.2% paid by Greece for its bail-out.
Irish Prime Minister Brian Cowen said it was the "best available deal for Ireland".
It provides "vital time and space to successfully and conclusively address the problems we've been dealing with since the financial crisis began", he said.
He also said the country would take 10bn euros immediately to boost the capital reserves of its state-backed banks.
Another 25bn would remain in reserve, earmarked for the banks.
The Irish government has also said that interest payments on all state debt will account for more than 20% of tax revenues in 2014.
The deal does not require the Republic to change its low 12.5% corporation tax.
Powered by WizardRSS | Best Membership Site Software