Spain

Spanish and Italian bond yields have continued to race ahead following the European Union's bailout of the troubled economy's banking system.

Jim Rogers, the chairman of Rogers Holdings, has described the bailout of the Spanish banking sector as "absurd economics" in a scathing attack on the European Union's approach to the crisis.

ASHBY'S ANSWERS

The yield on Spanish government debt is racing higher this afternoon despite the move by the European authorities to spend €100bn bailing out the country's banking system.

European ministers' decision to agree a bailout for Spain's banking sector at the weekend has boosted markets, but managers remain cautious on the the extent to which it will solve the eurozone's long-term problems.

Europe's major markets climbed on the first day of trading after Spain was granted a €100bn bailout for its banking sector over the weekend.

Oil futures have risen to a five-month high on hopes of stronger demand for fuel following the announcement of the Spanish bailout.

The single currency strengthened against the dollar today as Spain was granted a €100bn EU and IMF bailout to prop up its banking sector.

London's FTSE 100 slipped into the red in early trading this morning after Fitch Ratings cut Spain's long-term credit rating and predicted a slump through 2013.

Fitch has cut's Spain's credit rating by three notches to BBB as estimates for the size of the bailout it needs balloon.