European markets drop on Monday over Spain fears

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European markets drop on Monday over Spain fears

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European markets are feeling the heat from worries over Spain potentially needing a bailout, with shares across the continent down on Monday’s opening.

The EURO STOXX 50 sank 1.8 percent, in France the CAC was down 1.75 percent and Germany’s DAX fell 1.4 percent.

The yield on Spain’s 10-year bonds hit a record of more than 7.5 percent – exceeding the seven percent threshold widely considered unsustainable in the long-run.

Fears that Spain could become the fourth European nation to need a rescue were sparked by the regions of Murcia and Valencia requesting financial aid from Madrid. The country’s media is reporting others could soon follow.

The euro has hit a 12-year low versus Japan’s yen and a two-year low against the US dollar.