Markets edge forward despite fears over Spain

Stock markets reclaimed some ground but the euro fell on speculation Spain could move toward a debt rescue and the ECB would launch a new bond-buying plan.

Talk that the China Securities Regulatory Commission would announce steps to support beleaguered domestic markets was also positive for relatively risky investments..

Eurozone worries have roared back into focus over the last week as the feelgood factor of recent ECB stimulus has given way to renewed uncertainty over Spain’s willingness to submit to a politically painful rescue programme. Spain unveiled a tough budget programme last night

The MSCI world equity index was up 0.4% to 331.91.

“I think ... a few opportunistic buyers have been creeping in, on the hope that Spain might just push the bailout button,” said Angus Campbell, head of market analysis at Capital Spreads in London. “If that happens, I can only imagine you’ll see risk assets rise.”

The Dow Jones industrial average was up 18.32 points, or 0.14%, at 13,431.83. The Standard & Poor’s 500 Index was up 3.32 points, or 0.23%, at 1,436.64. The Nasdaq Composite Index was up 6.37 points, or 0.21%, at 3,100.08.

Separately, the Labor Department said the US economy likely created 386,000 more jobs in the 12 months through March than previously estimated.

In China, stocks rebounded on speculation a China Securities Regulatory Commission announcement could include changes to the IPO market. Traders said China’s central bank fed $57.9bn into money markets this week, the largest weekly injection in history.