European stock markets are showing gains following indications that the European Central Bank (ECB) may step in to help Spain.

All major European indices including Dublin’s ISEQ are seeing green this morning.

There are fears that the high borrowing costs of Spain on the bond markets may force it to seek a bailout.

But statements from Angela Merkel and the head of the ECB Mario Draghi indicate the ECB may start buying Spanish bonds to force down the borrowing costs there.

The cost of Italian government bonds also fell today indicating greater market confidence.

Markets will keep an eye on U.S. Treasury Secretary Timothy Geithner who is to meet German Finance Minister Wolfgang Schaeuble and Mr. Draghi today.

The U.S. Treasury said Geithner and the officials will discuss the U.S., European and global economies.