European markets are set for a mixed open on Wednesday after the Catalonian region in Spain asked for a financial lifeline from the national government, raising concerns that the country itself will soon ask for a bailout.
The FTSE 100 is called down 10 points at 5,766 while the German DAX is expected to fare better opening at 7,008, up 5 points and the French CAC 40 at 3,439 up 7 points.
Catalonia became the latest region to ask for a lifeline from the Spanish government when it asked for 5 billion euros ($6.2 billion) to shore up its banks, further cementing fears that the country itself will follow Greece, Portugal and Ireland and ask for more financial assistance from the euro zone.
Spain’s Prime Minister Mariano Rajoy denied that his country needs a bailout, reiterating on Tuesday his calls that Spain is not asking for more money . “There isn’t any negotiation about this issue,” he told a press conference in Madrid after holding talks with visiting European Council President Herman Van Rompuy. “Because we have not made a request…we are not negotiating anything,” he said.Page 1 of 2 | Next Page