Monday saw the shared currency of the European Union fall after a prominent German think tank released underwhelming business survey results, Reuters reports.
Spanish government bonds climbed after the nation appeared to slowly move toward soliciting a bailout as Italian bonds also climbed. Munich-based think tank Ifo said on Monday that the business climate index dropped from 102.3 last month to 101.4 in September.
"What makes today's markets difficult is that a downgrade could actually prompt Spain to seek aid, which would be positive for the euro," associate general manager of market making Katsunori Kitakura with Sumitomo Mitsui Trust Bank told the news source.
Later this week, Spain is likely to release its draft budget for 2013 and also note austerity measures it plans to implement. A stress test of the country's banks also will be released toward the end of the week, all of which combined could serve as a foundation for a request for a bailout.
A high-level political ally of German Chancellor Angela Merkel told Bloomberg that Spain must decide whether it needs a bailout rather than belaboring the issue.
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