Markets are shooting higher after announcements from Brussels indicating that Europe’s bailout funds will now lead bank recapitalizations that will not add to the size of national governments’ debt.Take a look at these numbers:
CAC 40: 2.33%
FTSE 100: 1.20%
IBEX 35: 3.16%
FTSE MIB: 2.98%
These gains are being led by financial stocks.
European leaders also agreed to establish a supervisory body that would oversee the European banking system. “We affirm that it is imperative to break the vicious circle between banks and sovereigns,” leaders wrote in a statement published after 13 hours of talks.