Markets spooked by euro crisis

Global markets have fallen after Spain saw its cost of borrowing rocket and Greece moved closer to leaving the euro.

The eurozone crisis escalated this week as Greece moved closer to leaving the euro and Spain's borrowing costs increased dramatically. Yields on two-year Spanish bonds hit fresh euro-era highs of over 7% on Wednesday. Global markets were spooked, with the FTSE 100 down 2%, the German Dax down 1.6% and Hong Kong's Hang Seng down 2.8% on Monday.

The troika' of international lenders (the International Monetary Fund, the European Central Bank and the European Commission) meets in Athens to decide whether Greece's austerity programme is meeting bail-out targets. The country will only receive a €31bn loan payment in September if officials give the go ahead.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.