Update: European markets slump as Spanish pain continues

European equities have fallen sharply this morning as the rate of Spain's manufacturing contraction increased and soaring eurozone unemployment worried investors.

The Euro Stoxx 50 had fallen 1.28% to 2,091 by mid-morning, while the German Dax had fallen just over 2% to 6,137. The French Cac 40 shed 1.36% to 2,976. Falls on London's FTSE 100 were less pronounced, though the index still edged down 0.52% to 5,293. The rate of contraction in Spain's manufacturing sector was worse than Greece in May, according to a business survey. Markit's eurozone manufacturing purchasing managers' index for the eurozone dropped to 42 for May, worst in the bloc, from 45.9 in April. Greece's level was 43.1. Eurozone unemployment figures also unsettled invest...