The European Commission and European Central Bank have concluded talks at the IMF. They said that the euro crisis has reached a critical stage. Markets of 17 euro states are still in recession, ITAR-TASS reports.
Spain is expecting support for its banking system approved by the Euro Group on July 9, Vice President of the European Commission Olli Ren said. Financial aid of €100 billion for Spanish banks was approved on June 9. Independent auditors recommended €62 billion. Auditors of Oliver Wyman said that Spain would need €16-25 billion, then €51-62 billion. The basic demand for capital should not exceed €25.6 billion and grow to €51.8 billion, RIA Novosti reports.
Jean-Claude Junker, head of the European Group, said that independent auditors will evaluate the need for support by September. Spain is expected to make the aid request on Monday.
The European Commission, European Central Bank and the European Banking Authority (EBA) will negotiate a memorandum of understanding.
Oil prices dropped by 3-4% due to economic data of Europe, China and the US. Their demand for dollars increased and interest in raw assets dropped.
Prices for August futures for WTI (Light Sweet Crude Oil) in New York dropped by $3.25 (4%) to $78.20 per barrel, for Brent by $3.10 (3.3%) to $89.59 per barrel.
The dollar currency in the basket of six trading partners of the US increased by 0.93% to 82.24 points. The Chinese industrial activity index dropped from 48.4 points in May to 48.1 points in June.
The USD increased in price by 0.61 rubles to 33.57 rubles. The euro rate increased by 0.52 rubles to 42.12 rubles. The currency basket of $0.55 and €0.45 increased by 0.57 rubles to 37.42 rubles.
US secondary housing sales dropped by 1.5%, to 4.55 million deals, compared with April. Analysts expected a reduction of 1.3%.
