Investors give their verdict on Spain's bailout

European ministers' decision to agree a bailout for Spain's banking sector at the weekend has boosted markets, but managers remain cautious on the the extent to which it will solve the eurozone's long-term problems.

Spanish Prime Minister Mariano Rajoy described the €100bn EU and IMF rescue package as a victory for the government in that it has managed to avoid a wider bailout for the country. This morning European markets followed gains in Asia overnight, after the Hang Seng and Nikkei rallied by over 2%. By mid-morning on Monday the Euro Stoxx 50 had gained nearly 1.9% to 2,184, the French Cac 40 had climbed 1.6% and the German Dax gained nearly 2%. Although most managers agreed the bailout is ultimately good news, they remain apprehensive on how far the deal will go to solve the eurozone's und...