Reactions to a Rumour

We've decided to track market reactions to the three appearances over the last six weeks of a rumour that the ECB was preparing a rescue package for the Kingdom of Spain. 

1). May 4 - Le Figaro;

2). June 10 - FT Deutschland;

3). June 14 - FAZ.

Measured as the 2-day change from the evening prior to the news releases, the graph shows the Ibex 35 stock index, the Spain bond and the eur/usd exchange rate reacting as expected to the first instance. In the second, they all go against the grain and, in the last, only the Spanish 10-year gives credence to the story.

Readers should note that we use, for the sake of scaling, different measures for each item. Our only point is the direction of the change.

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