Markets fall on Spanish rumours

European markets continued to drop yesterday as speculation increased about whether a full bailout would be required for Spain.

The finance ministers of Spain and Germany are to meet on Tuesday, with rumours circulating that up to six of Spain’s eight autonomous regions may need assistance. Spanish bond yields set a new high of 7.625 per cent as a result. The Iseq index reflected this negative sentiment by falling 60.52 points or 1.7% to close at 3,071.80.

Irish financials were off across the board as all three major banks lost ground. AIB shed 0.1c or 2% to close at 4.7c. Permanent TSB Group was 0.3c down at 2.2c, while Bank of Ireland finished 0.2c lower at 8.7c.