European shares dip on weak Spanish debt sale

European shares fell to a two-month low yesterday after a Spanish debt sale failed to reach its targets reigniting fears that the eurozone sovereign debt crisis could spark further national bailouts.

Eurozone banks, which own the bulk of the region’s debt, fell 3.1% after Spain sold less debt than it had hoped for.

Economy minister Luis de Guindos acknowledged in a Reuters interview that the belief that Madrid may not be able to control its finances was the largest risk the Spanish economy faces.