European markets cheer EFSF aid funds for Spanish bonds (Barcelona) - The European markets are edging higher on Thursday despite rising yields for Spanish debt. News that the EFSF will set aside aid funds to buy Spanish bonds triggered a risk rally.

The German DAX 30 and the French CAC 40 are up by 1.00% and 0.60%, respectively, while the Spanish IBEX 35 rises by 0.90% despite rising yields of the 2-year bond at 5.204% (vs 4.335%), 5-year at 6.459% (vs 6.072%) and 7-year at 6.701% (vs 4.832%) in today’s bond auction that raised €2.981B. The 10-year yield is still surrounding 7% at the secondary market. The British FTSE 100 is up by 0.50% after disappointing retail sales in the UK: the annualized change in retail sales dropped from +2.1% to +1.6%, against rising expectations to +2.4%. The monthly change was +0.1% instead of +0.6% consensus.

Futures for the American S&P 500, Nasdaq 100 and Dow Jones 30 are signaling a higher open between 0.60% and 0.70%. WTI crude oil is already up by 1.30%, at 91.30. Gold trades at 1584 (+0.74%).