"Spain is facing an economic situation of extreme difficulty"
- Mariano Rajoy, Prime Minister of Spain
Demand for Spain's debt tumbled on Wednesday and the nation only sold 2.59 billion euros of bonds, just above the minimum amount it planned. The average yield on five-year bonds rose to 4.319 percent from 3.376 percent the previous month.
"Spain is facing an economic situation of extreme difficulty, I repeat, of extreme difficulty, and anyone who doesn't understand that is fooling themselves," said Prime Minister Mariano Rajoy the same day.
The Stoxx Europe 600 Index gained 0.12 per cent to 259.07. Germany's DAX Index retreated 0.13 per cent and France's CAC 40 Index gained 0.19 per cent. The U.K.'s FTSE 100 Index rose 0.35 per cent to 5,723.67.
"Negative sentiment has turned positive," said Angus Campbell, head of market analysis at Capital Spreads in London.
"The reversal in the market is yet another encouraging sign there is still risk appetite out there if stocks suddenly present another buying opportunity."
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