European bank stocks nosedive as Spanish yields spike

Banking stocks across Europe were falling this afternoon, with investors fretting over Spain's ability to fund itself after yields spiked above 7% once again.

Relief over the Greek election result gave way rapidly to concerns about problems in Spain and the wider eurozone, with European banks including BNP Paribas down sharply. By late-afternoon BNP was down 3.85%, while Germany's Commerzbank was 4% lower and Spain's UniCredit 3.26% weaker. UK banks were also under the cosh, with RBS down 5% and Lloyds off 4%. Banking shares hold off as bond markets in Europe continue to show signs of major stress. Spanish 10-year bonds today saw yields climb to 7.19% while the 2-year note hit 5.5% for the first time since November last year. Italy's ...