Markets knocked by Eurozone concerns

Ben Southwood
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EUROZONE markets took a hammering yesterday, while bond yields shot up and oil prices fell, suggesting market unease with the continuing Eurozone crisis.

Across Europe indices fell: the FTSE was down 0.5 per cent, the French CAC dipped one per cent, the German DAX slid 1.2 per cent, the Spanish IBEX closed 1.8 per cent lower, and the Italian FTSE MIB was down a full 2.3 per cent.

Spanish ten-year yields rose above 6.5 per cent, while their Italian equivalents were just over six per cent. Spain’s figure is below the psychologically important seven per cent level reached last week, but its rise marks concerns over bailout packages.
Madrid is due to issue between €2bn and €3bn in short-term T-bills this morning.

In London, oil was down some 30 per cent on this year’s peak of $128 a barrel, now priced around $90, partly reflecting increased supply from the Middle East.