FTSE rises on Spanish bailout speculation

<p>The markets have responded positively to news that Spain may seek a bailout. </p>

Speculation is mounting that Spain is going to seek a bailout from the European Central Bank.

And this news has been received warmly by the London Stock Exchange, as the FTSE 100 was up over 29 points to an index value of 5,883.67 as of 10:28 BST this morning (September 21st).

The Spanish economy has been struggling since the onset of the financial crisis in 2007, as a lot of money was tied up in bad property loans.

So far, the nation's prime minster Mariano Rajoy has resisted calls from the euro region to seek a financial stimulus package to prop up its ailing economy.

However, Mr Rajoy has travelled to Rome, Italy today in order to hold talks with Italian premier Mario Monti.

It comes at a time when Catalonia is looking to break away from Spain and become a sovereign state and a member of the European Union.

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