FTSE slumps as Spanish yields move back above 6%

The FTSE 100 was off over 1% mid-afternoon as investors spooked by the latest developments in Spain took risk off the table.

London's blue chip index was down 75 points to stand at 5,784 just before 2pm, with banking and mining stocks leading the fallers after unrest in Spain flared up again. Spanish 10-year bond yields moved back above the 6% mark earlier after the troubled Catalonian government called a snap regional election. In Madrid, where the national government is due to unveil its 2013 budget tomorrow, protestors clashed with police, while today's general strike in Greece has also led to mass unrest. European indices and the euro were also in the doldrums. The German DAX shed 1.6% to stand at 7,...