EU leaders have agreed to ease repayment rules for emergency loans to Spanish banks and potential help for Italy, with concessions from Merkel and Germany. The Euro traded sharply higher following the news up towards the 1.26 level and with it Asian markets have moved sharply higher. European equity futures are indicating around 2% higher. Worth noting that today is quarter end so markets may be subjected to an element of window dressing.
Italian and Spanish debt have rallied in early trade with 10 year yields looking around 40bps lower.
Posted by Philip Ball | Sales and Trading