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European markets took a big hit today, obliterating any hope generated by yesterday’s rally. Contagion is back, baby!

FTSE 100: -1.12%
CAC 40: -2.53%
DAX: -2.37%
FTSE MIB: -3.31%
IBEX 35: -3.52%

Italy and Spain led the downward trend, with the latter index briefly down over 4 per cent.

Yields on Spanish government bonds continued to push 6 per cent, but did not exceed that benchmark level. Spanish CDS also neared records, hitting 498 bps.

Worth noting that the U.K. FTSE 100 managed to hang on to losses closer to the ones we’re seeing in the states today.

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