For the first time in a month and a half, the risk premium has dropped beneath 500 basis points. The stock market jumped 4% while the rest of European markets registered moderate gains.
It's not time to celebrate just yet, but the risk premium dropping and the Ibex breaking resistance at 7,220 points are positive signs. If maintained, they could suggest a trend change.
Nobody would hazard an explanation yesterday, but it seems that the markets understand that Spain is taking the righ path, boosted by the possibility that any surplus bailout funding could go to buying Spanish debt. So there are reasons for mild optimism.
