“LONDON (AP) — Global markets mostly fell Tuesday as investors worried about the global growth outlook and Spain’s apparent delay in accepting a financial aid package.
Spain’s markets have improved in recent weeks on expectations that the government will get some form of rescue loan from the 16 other eurozone countries. But Madrid has not made any formal request yet, likely wary of the policy conditions that would come attached.
The delay pushed the country’s bond yields sharply higher on Monday, suggesting an increase in investor concern about the government’s finances. The yields eased back somewhat on Tuesday after a bond auction was well-received. The sale of 12- and 18-month debt saw strong demand and resulted in lower interest rates than in the previous such auctions.
The auction result helped markets, but tensions remain high — by midmorning in Europe, Spain’s main stock index was still down 1.7 percent.
“Investors appear to be turning nervous,” said Kintai Cheung, analyst at Credit Agricole CIB.”
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