The big news of the morning is that yields on Spanish 10-year bonds surpassed the 6 per cent benchmark this morning.
Those yields are up 20 bps on the day, now at 6.04 per cent. That has sent the IBEX 35 down about 2.4 per cent.
Jitters about Spain follow reports that troubled bank Bankia will be bailed out by the Spanish government. While this seen as a positive for Spain in the near-term, it also suggests that the financial situation of Spanish banks is worse than officials want investors to believe.