All eyes on European markets as debt fears spread

The eyes of the world's investors will be on the European financial markets this morning after a day in which eurozone debt fears saw the FTSE suffer its heaviest one-day fall in two months.

As policymakers clashed over how to tackle Greece's ongoing debt woes and following Standard & Poor's decision to put Italy on a negative credit watch on Friday, concerns surfaced over Belgium after Fitch revised its outlook for the country down to negative. Combined with weekend political unrest in Spain - where the ruling Socialist party suffered a regional election wipeout - investor confidence took a heavy knock. London's leading index lost more than 112 points, or 1.9%, to fall to 5,835, representing its largest one-day decline since the middle of April. Elsewhere, the German ...