Spain's economy minister Luis de Guindos denied his country needs a bailout as he gaave a speech to the London School of Economics.
The FTSE 100 was off over 1% mid-afternoon as investors spooked by the latest developments in Spain took risk off the table.
Investec portfolio manager Max King explains why, with corporate earnings beginning to catch up to the market, the perfect time to buy equities is now, before monetary policy begins to tighten once more.
J.P. Morgan Asset Management's Nick Gartside bought Spanish 10 year debt as the ECB's bond buying plan, announced last week, means he now knows "the rules of the game".
UK asset managers are readying their contingency plans to cope with a possible ‘Grexit' as the beleaguered economy returns to the spotlight, despite ECB president Mario Draghi providing a boost for European markets last week.
The FTSE 100 has risen 2.1% and yields on benchmark Italian government debt have touched five-month lows as markets react positively to the ECB's bond-buying plans.