Photo: Wikimedia Commons
Europe is booming today.Italy is up 1%.
Spain is up 1.4%.
The hot theory is that this reflects Spain getting closer to asking for a bailout.
The rebound was at least partly helped by the report by Reuters that Spanish officials have indicated that Spain is ready to request a eurozone bailout for its public finances as early as next weekend, so it could be discussed at the next Eurogroup meeting on 8 October. While the timeline is far from certain particularly due to resistance from Germany and upcoming regional elections in Galicia and Basque country on 21 October, the shift in the Spanish position is a positive development and should help to remove some pressure from SPGBs and BTPs in the near future.