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After a nice move higher this week, European markets are down big today on the heels of another disappointing EU summit.Spain, which led most of the rally, is down 2.2 per cent heading into the close.
The Italian FTSE MIB is down 1.6 per cent and the German Dax and French CAC 40 are both in the red around 0.75 per cent.
The price action following the results of the summit of EU leaders that concluded this morning shows what’s really on the market’s mind.
The ministers failed to reveal to the public any details regarding discussions of the Spanish bailout situation, and plans to push ahead with banking union, which is important for eventually recapitalizing Spain’s mess of a banking system, seem to be on fragile footing.
German Chancellor Angela Merkel voiced concerns that the plans for banking union might miss their target.
And bank stocks dragged the Spanish market lower today, with Bankia down over 11 per cent and Popular down nearly 6 per cent.