The European Central Bank has rebuffed calls for mass purchases of southern European bonds, despite growing pressure from Spain and Italy for dramatic action to buttress monetary union.
Jean-Claude Trichet, the ECB's president, said emergency lending support for eurozone banks would be extended until at least April next year, citing "acute tensions" in the market, writes the Telegraph. The delay removes the risk that Frankurt might soon pull away the prop holding up the Irish and Greek banking systems, as well as the Spanish cajas - or savings banks - and the sovereign states behind them. Traders say the ECB intervened directly in the weakest bond markets on Thursday to drive down yields and calm nerves. Read more China 'set to tighten monetary policy' Chi...
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