Global markets spooked by Spanish bond yield spike

Global markets were spooked by Spanish bond yields spiking to near-critical levels, with many indices posting losses of more than 1% overnight, and the FTSE 100 opening 1% lower this morning.

London's leading index was down more than 50 points, or 0.93%, lower at 5,373 in the minuters after opening. The index fell more than 1.5% yesterday. In the US, the S&P 500 reported a decline of 1.68% to 1,216.13 at the end of trading while the FTSE 100 dropped 1.56% lower to 5423.14, and the Eurostoxx 50 closed down 1.11%. The Nikkei 225 was down 1.23% to 8,374.91 and emerging economy indices such as the Hang Seng dropped 1.8% and the Shanghai 1.92%. Yesterday saw Spanish ten-year government bonds yields come perilously close to reaching the danger level of 7%. Italy and Greece ha...