Markets plummet as Spanish finances deteriorate
Markets take a beating on eurozone woes.
Equity markets are in a tailspin and Spanish government bond yields have reached euro-era highs of more than 7.5 per cent, amid mounting concern over the eurozone debt crisis.
Germany’s benchmark Dax equity index has shed an astonishing 3.35 per cent today so far, falling to 6,408.19 points.
London’s blue-chip FTSE 100 index has fallen by 2.27 per cent, to 5,523.39 points, while the Stoxx 50 index of European shares has dropped by 2.68 per cent, to 2,177.34 points.
The bloodbath is being reflected in peripheral bond markets, with 10-year Spanish government bond yields rising by 25 basis points to 7.52 per cent, above the previous high of 7.285 per cent, according to Bloomberg data.
The spike came as Spanish region Mercia looked increasingly likely to join Valencia in seeking a state bailout, while investors were further battered by fears Greece may yet exit the single currency.
The so-called troika - the European Commission, the European Central Bank (ECB) and the International Monetary Fund (IMF) - arrive in Athens tomorrow.