Euro returns to 15-month lows

Just a few trading days in 2012 have been enough to cause a scare. Instability in the financial sector returned to put most European stock markets in check. But Germany stood strong, closing up 2.7% on the week. With risk indicators shooting skyward as banks fear lending among themselves, the euro hit lows not seen since September 2010 as it fell over 2% to 1.27 dollars on the euro.

Current Minister of the Economy Luis de Guindos made statements to Financial Times, assuring that the Spanish central bank would provision another 50 billion euros. These statements caused an uproar in a sector already in the bears' sights.

Falling more than 6.5% on the week, Sabadell, Santander, Mediaset and BBVA were the stocks most punished within the Ibex, which closed the first week of the year at 8,289 points after ceding 3.24%.

Without a doubt, Dia was high point of the week for the Spanish stock market. A new company on the Ibex, it showed the most bullish gains by rising 7%. Arcelor and Acerinox followed close behind as both steel companies posted 4% gains.

Tensions in the financial sector and rumors of possible capital campaigns once again invaded our borders. The Italian stock market closed the week down 2.9% after being drug down by double-digit losses from Unicredit, Banca Populare de Milano, Banco Populare and Intesa. Unicredit's losses were an incredible 38% after the bank announced intentions to raise 7.5 billion euros in capital at a 43% discount.

Unicredit was the biggest loser on the EuroStoxx 50 index, followed by Intesa, Société y Deutsche Bank. The German bank was, on this occasion, the target of unconfirmed rumors about possible capital campaigns aimed at recapitalization.