The Spanish budget cuts proved a great boost to The Markets because it brings Spain closer to being forced to ask for the OMT bail out and stringent austerity strings attached. Hollande has to implement stringent budget cuts otherwise the markets are poised to off load French bonds.
In other words The Markets are only delighted when States are forced into taking measures that will destroy their economies? Anything that accelerates economic decline such as cuts in a recession (thank you Paul Krugman) and causes harsh and counter productive pain on citizens is applauded and rewarded by The Markets. The value of the bonds of the countries meeting out this lethal punishment to its citizens goes up.
Well, if the markets are not daft, then a conspiracy theory could explain it. They shoot the value of bonds high so as to profit, when inevitably these bonds will be reduced to Junk status once the infamous austerity measures start to bight in causing recession and unemployment to rocket sky high.
Since I do not believe in conspiracy theories I have to take the position that The Markets are daft and the politicians running after them even dafter!