A deal in Brussels among EU leaders has seen the FTSE 100 race higher, up around 60 points on hopes that Europe is finally pulling itself together.
So, is Europe now fixed? At the EU summit last night Italy and Spain used their combined strength to wring significant concessions from Germany.
This has provided online spread betting investors with reason to think that a real solution to the Eurozone crisis is not as far off as had been feared.
Both Madrid and Rome have something to celebrate. Spain are able to point to the new rule that allows rescue funds to be injected directly into struggling banks rather than being forced to go through the national government.
This reduces Spain’s debt burden, easing fears that a full bailout would be required.
As well as knocking Germany out of Euro 2012, Italy convinced the meeting that countries requesting assistance would not be subjected to close scrutiny in the way that Greece has been.
In the words of the Italian PM, ‘it is a double satisfaction for Italy’.
Such crowing might not go down well in Berlin, and Chancellor Merkel has begun to issue statements that have dulled the impact of the news.
Already the FTSE 100 spread betting market has edged back from the highs seen at the beginning of the session, indicating a degree of nervousness remains.
In the past, the Spanish bank rescue and the second Greek election each saw strong starts for the index spread betting markets quickly whittled away as the day wore on. It is entirely possible that today’s session could follow a similar pattern.
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Financial Market Comments from Chris Beauchamp, Market Analyst, IG Index.
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