European markets have tumbled today amid fears over Spanish debt.
At close, the FTSE 100 had fallen by 1.74 per cent to stand at 5297.28. The German Dax and the French Cac 40 were also down by 1.8 and 2.2 per cent respectively.
The falls come as the difference between the cost of Spanish and German bonds hit a new record as fears on Spanish debt rose
German government 10-year bond yields fell to 1.32 per cent, while Spain’s rose to 6.65 per cent.