We flagged the Spanish rally early on, but it really went into overdrive in the final hour or so of the day.
The benchmark IBEX 35 index gained about 3.7%.
Europe’s vacation seems to be coming to an end a little bit, as a round of “shuttle diplomacy” between leaders is set to begin.
And there’s a sense of hope that Spain will ask for aid and things will move forward.
There are also some comments from Merkel (she’s back) about how Germany and the ECB are on the same page (via Bloomberg). If Germany isn’t going to be a total thorn in the side of the ECB, that’s helpful.