Markets in turmoil as borrowing costs rise for Spain, France and Italy

The turmoil in world markets intensified today as fears the eurozone will collapse were fuelled by a rise in borrowing costs for some of its biggest members.

The FTSE 100 Index in the UK fell 1% after Spain was forced to pay nearly 7% to borrow €3.56bn on bond markets - a level widely seen as unsustainable.