FTSE pauses for breath as eurozone fears resurface

European markets have paused for breath in early trading after yesterday's heavy sell off, as contagion fears in the eurozone resurfaced.

Spanish 10-year bond yields touched 6%, leading the FTSE 100 to slump to its lowest level of the year, posting losses of 128 points to finish at 5,596. The yield on Italian 10-year bonds also spooked markets, climbing to 5.7%, while Italy's FTSE MIB index closed more than 5% lower. However, at 8.45am Spanish and Italian yields pushed lower, declining to 5.91% and 5.65% respectively, giving European markets a much needed breather. The FTSE 100 has opened trading up 0.32% or 18 points to 5,614, but has almost undone all its gains since the start of the year as fears over the eurozone...