Da Fitch a barrage of downgrades on Spanish banks. After sovereign debt downgrade, the agency cut ratings on 18 institutions.
The news immediately had repercussions on the government bond market, with the Spanish spread which has jumped over 540 points. The new layer matches returns on bonos ten-years soared to 6,83%. It's about the new high since the introduction of the euro.
The renewed tension is also discharged on Italian BTPs, with yields on ten-year bonds now at 6,2%. The Italian spread returns to 480 basis points.
All this inevitably had repercussions on stock exchanges. A little less than an hour from the closing Milan loses almost 2 points. Madrid is in the red by 0,5%, Paris by 0,77%, Frankfurt by 0,69% and London by 0,23%.
