Europe Is In The Red And There Are Reports That We'll See A Spanish Bank Bailout Plan This Weekend

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Photo: Flickr / lorentey

Markets in Europe are mostly in the red, but have pared losses since getting clobbered in early trading.Any optimism from earlier this week appears to have vanished as everyone forgets about any Federal Reserve-related optimism and remembers that Europe is teetering on a scary precipice.

That showed in Asian markets with the Nikkei closing down 2.09 per cent.

That negative sentiment appears to have abated somewhat. The big news of the morning is that Spanish PM Mariano Rajoy has told reporters that he is talking to other EU leaders in order to find the best way to address concerns about the Spanish banking system. And now, according to two Reuters sources, Spain will officially request European aid for its banking sector on Saturday afternoon.

That has sent the Spanish IBEX 35 into the green, and it’s now up 0.05 per cent.

The Italian FTSE MIB was off 2.25 per cent just an hour into trading and Italian bank shares had already been halted after terrible industrial production numbers. But that index—among others—has bounced back after headlines from Spain. It’s still in the red, however, trading off 1.5 per cent.

Dow futures are down 25 points, so we’re still looking at a negative open in the U.S.

READ MORE: Your Complete Guide To The Crisis Going On In Spain >

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