Worries Over Earnings and Spain Hit European Shares

A top European share index slid to its lowest level in more than one and a half months on Tuesday, hit by worries over weak company results and Spain's debt crisis.

Major European Indexes

Symbol
Name
Price
 
Change
%Change
Volume
FTSE
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CAC
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DAX
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The FTSEurofirst 300 index provisionally closed down 1.7 percent at 1,089.09 points — its lowest closing level since ending at 1,079.24 points on Sept. 5.

The euro zone's blue-chip Euro STOXX 50 index also fell 2.1 percent to 2,478.46 points, while the Euro STOXX 50 implied volatility index rose 10 percent, highlighting investors' uncertainty over the market outlook.

The borrowing costs of Spain, which is under pressure to seek a sovereign bailout, rose on Tuesday after credit rating agency Moody's downgraded five Spanish regions.

"Realism is again starting to hit home," said Adrian Slack, head of equities at Bastion Capital, who recommended selling shares on any signs of a market rise rather than buying on dips.