Markets pause for breath after Spanish bank move

Investors in Europe are treading carefully today after some steep losses across equity markets so far this week, with Spain's pledge to support its banking system putting a stop to selling for now.

The FTSE 100 is currently marginally lower, down around eight points at 5,522, while Germany's Dax has recovered some of its losses and is up 0.3% at 6,491 points. Other indices continued to show signs of strain however, with the French Cac down a further 0.7% at 3,097 points. Investors are keeping their powder dry in the expectation of further falls, with Spain by no means out of the woods despite the latest move by the government to intervene in the banking system. Spain's bailout fund has taken a 45% stake in Bankia, the country's third largest bank, with Mariano Rajoy, Spain's ...