Spain

The Spanish region of Catalonia has asked the central government for a €5bn pay-out to help the struggling region, amid the country's latest GDP data showing it is in a deeper recession than feared.

Spanish stocks rallied sharply on Monday afternoon after a technical glitch shut down the country's blue chip index for almost five hours.

European stocks are climbing after a four day sell-off, following a pledge from European Central Bank president Mario Draghi that the ECB will "do whatever it takes to preserve the euro".

Global equity markets are tumbling this morning as the eurozone crisis once again takes centre stage, with Spain's debt costs leaping to a new record high and speculation returning Greece will exit the single currency.

European equity markets have slumped in afternoon trading as Spanish 10-year bond yields approach record highs once again.

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Expats living in Spain who have investments outside of the country are being warned to beware of the Spanish tax authorities' clampdown on tax evasion.

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Moody's Investors Service has downgraded the credit rating on 28 Spanish banks, including Banco Santander, less than a month after cutting the nation's sovereign rating.

Governments across Europe are set to buy Spanish and Italian bonds through two European rescue funds, a move the ECB hopes will send a signal to financial markets that Germany is behind the eurozone.