Global stock markets and the European single currency rose sharply in overnight trading in Asia following Spain's formal request for emergency financial aid to help support its banking system.
The €100bn package, while lacking in detail, seems solid enough to support investor optimism at least for the moment, as critical elections in Greece this week may increase concern that the Eurozone's future remains uncertain.
In morning trading, the FTSE 100 was up around 1.3 % but still lags the near 2 % gains we're seeing in Germany and France. The Europe-wide FTSE Euro first 300 is just a couple of points away from 1,000, a level it hasn't breached in nearly a month, after rising 1.65 % to 998.43. Spain's benchmark index, the Ibex in Madrid, rose 3.8%. The euro gained more than one cent against the US dollar hitting a two week high. Asia stocks, also reported a 15.3 % surge in overseas sales last month - well ahead of analysts' estimates.
Written and Presented by Ann Salter