Germany's credit rating warning

Germany and the Netherlands have been put on negative ratings watch by Moody's. It is after increased fears about Spain's economy sent markets tumbling after news that the country was pushed deeper into recession and a step closer to a formal bailout

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London market hit by Germany's credit rating warning

The London market continued to come under pressure today after a credit rating agency hit Germany with a negative outlook and added to ongoing fears over the future of the eurozone.

The FTSE 100 Index was 10 points lower at 5523 after a pounding yesterday when it fell 2%, wiping £30 billion from its value amid concerns over Spain and Greece. Moody's last night lowered its outlook on Germany's credit rating to negative from stable, denting faith in Europe's strongest economy.

The move came after a turbulent day for the single currency bloc, which saw the yield on 10-year Spanish bond hit euro-era highs of 7.5% as it became increasingly likely that the country would need an EU bailout.

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