Markets cautious amid Spain concerns

Published June 12, 2012 5:04pm ET



BRUSSELS (AP) — World markets rose cautiously Tuesday amid uncertainty over whether Europe’s plan to rescue Spain’s ailing banks would be enough to prevent the continent’s debt crisis from infecting other economies, like Italy.

Stocks had surged early Monday as investors seemed to bestow their approval on a weekend deal to make €100 billion ($125 billion) available to Spain to revive banks crushed by bad real estate loans. But those gains were erased in just a few hours, as observers worried the money might just add to the Spanish government’s debts, and maybe eventually force it to seek its own bailout.

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