In Toni Vorobyova’s article, Spain pushes euro zone equities to worst day in 2 months; he discusses how the euro zone equities suffered their worst session in two months. There were violent anti-austerity protests in Greece and Spain that has been an obstacle for the euro zone to cross as they make their way out of recession and financial crisis. There were disagreements among euro zone member countries on how to recapitalize struggling banks. Along with banks, the article also discusses the issues regarding autos and basic resources, which are sensitive to the economic cycle. Swedish truck maker Scania predicts tough markets to continue. The EuroSTOXX 50 index of euro zone blue chips fell 2.7 percent to 2,498.52 points; it’s biggest one-day drop since early August. By the end of the day there were still very poor figures and perspectives inside the euro zone. On the other hand, the pan-European index is still up 16 percent form early June. The European Central Bank plans to buy bonds of indebted sovereigns. The responsibility is now on the ECB plans to give results. The ECB will only start buying Spanish bonds once Madrid asks for help and agrees to strict terms, which will further irritate a population that has taken to the streets to protest cuts to public salaries and services.
After reading this article, I learned that the euro zone is practically in a recession and is experiencing a financial crisis. I also learned a way they can attempt to make their way out of the recession and crisis, which is for the European Central Bank to buy bonds of indebted sovereigns. Countries such as Spain and Greece could help the ECB. I also learned that there are protests going on in Greece and Spain because of this. They are protesting cuts to public salaries and services and are not for dealing with the European Central Bank. I also learned that the median forecast pointed