Ibex 35 jumps as Catalan president said to be leaning towards elections

Catalan president Carles Puigdemont is leaning towards calling regional elections, Madrid-based El Pais reported on Thursday citing sources close to the main nationalist parties.

Soon afterwards, local Catalan daily El Periodico reported that overnight several leading regional business leaders had met with the Basque regional leader Inigo Urukullu.

Specifically, Urkullu was said to have asked Puigdemont whether he would abstain from issuing a unilateral declaration of independence and calling fresh regional elections if Spanish prime minister Mariano Rajoy promised not to apply article 155 of the country's constitution, which would allow him to temporarily suspend Catalan autonomy.

Puigdemont reportedly answered affirmatively.

Also according to El Periodico, it would then fall to Rajoy to decide whether to trigger article 155 in Friday's session of the Spanish state but to also commit not to apply it.

For his part, Puigdemont would agree not to declare independence either before or after the Senate meets on Friday.

Looking further ahead, Basques and Catalans would forge a common front when it came to negotiating the constitutional reform which Rajoy had already promised.

By 1211 BST, Spain's top flight Ibex 35 was trading 1.74% higher to 10,220.60.

-- More to follow --