Markets rally as Spanish bailout draws nearer

Global equity markets have posted sharp gains as investors shrug off a lack of action from the European Central Bank and look to developments in Spain and monetary policy moves elsewhere.

In the US, the S&P rose 2.3% overnight to 1,315, following on from strong performance in Europe, where the FTSE 100 set the tone with a 2.4% rise to 5,384 despite the ECB failing to cut interest rates or provide the more supportive measures called for by investors. With Federal Reserve chairman Ben Bernanke due to speak later today, hopes for central bank action continue to spark optimism even as European politicians wrestle with the prospect of providing assistance to ‘too big to fail' Spain. Fed vice chair Janet Yellen hinted at further monetary easing in a speech overnight, helping...