Debt crisis: Relieved markets soar as eurozone shores up Spain's struggling banks The deal prompted a relief rally across markets this morning, with Spain's IBEX rising 3.3pc to 6,766. Other European equities followed suit. London's FTSE 100 added 1.1pc to 5,495 and Germany's DAX put on 2pc to 6,255. Simon Denham, head of Capital Spreads, pointed out that uncertainty also remained for investors around how the Spanish deal will work. "Equity investors are breathing a huge sigh of relief as European indices jump on the open and even higher than our original estimates however there are still lots of unanswered questions about how this particular bailout will work and then of course whether it will prove to be the right solution," he said. If history is anything to go by we have seen that bailing out banks doesn't work in the short term as we only have to see the struggling share prices of our own nationalised banks. Jeremy Batstone-Carr, chief economist at Charles Stanley, was similarly sceptical. "Stock markets have risen but we fear that investors have yet fully to embrace what the Spanish bailout might mean," he said. Where will the money to fund Spain's banks come from? Certainly not the IMF and unlikely the European Stability Mechanism. The ESM does not formally exist yet and importantly, has yet to be ratified in Germany the country seen by many as Europe's key underwriter.