Markets fall as Spanish woes rock investors

The FTSE 100 and a host of European markets were tumbling today after a warning from Moody's about Spain's credit rating spooked nervous investors.

Moody's downgraded Spain's credit rating by three notches, leaving it one above junk status, while warning it may cut it again within the next three months. The news sent yields on Spanish debt soaring above 7%, while markets sold off. By 9:53am, the FTSE 100 was down 1%, or 57.76 points, at 5,426. Elsewhere the French Cac 40 is down 1% or 29.6 points, at 3,000, while the German Dax is off 0.9% or 57 points, at 6,095. Overnight markets in the US and Asia also closed lower.