Markets surge on Spanish bailout hopes

Major European indices strengthened this afternoon as speculation over a Spanish bailout ramped up a notch.

The German DAX gained 1.4% to 7,359 points by mid-afternoon, while the Cac 40 also jumped 1.4% to 3,468, as investors anticipated Spain would officially enter Europe's bailout programme any day. In the UK, London's FTSE 100 was also enjoying a day in the sun, rallying 0.99% to 5,862 as the positive sentiment around Europe lifts shares. Investors have been speculating for some time whether Madrid is poised to tap the European Stability Mechanism for a bailout. This morning, reports from Bloomberg suggested Germany is open to a precautionary line of credit for Spain. Separately an...