European markets soared as Portuguese bonds made a strong showing at Wednesday’s sale, despite euro zone concerns for the nation’s financial stability. Demand for short-term 12-month T-bills was healthy, raising 500 million euros. The yield investors wanted, however, was high, according to a Reuters report.
On the other hand, the spread for 10-year Portuguese bonds against German 10-year Bunds dropped by 22 basis points, as Portugal rose above an overnight warning by Standard & Poor’s that it might downgrade Lisbon’s credit rating.
In Europe, the FTSE 100 index in London was up 114.23 points, or 2.07%, at 5,642.50. The CAC 40 in Paris was up 58.85 points, or 1.6%, to 3,669.29 and the DAX in Frankfurt rose 178.14 points, or 2.7%, to 6,866.63. The Euro Stoxx 50 index, a barometer of euro zone blue chips, was up 70.88 points, or 2.67%, to 2,721.87.