Why European Markets Are Booming

Cannons

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.

From Nomura:

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.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.