FTSE shrugs off Spain woes to edge higher

London's leading share index is edging back up towards the 5,800 mark in early trading, recovering from a fall to a three-week low at the end of last week as Spanish bailout fears weighed on sentiment.

Ratings agency Moody's has warned Spain could be downgraded to junk status this week, which economists fear could trigger a major sell-off in Spanish government bonds. Currently, Moody's rating for Spain's debt stands at Baa3, the lowest investment grade rating. Spanish Prime Minister Mariano Rajoy remains tight-lipped over whether the country will apply for an EU bailout. However, the FTSE 100 was buoyant in early trading, opening up 0.82% or 42 points to 5,789 at 9.15am. European markets followed suit, the German Dax is up 1.1% to 7,295, while the French Cac has gained 1.06% t...