2010-07-01 15:49

Adding to the support, the European Central Bank said demand for an offering of 3-month loans was weaker than expected, implying that European banks are not in as much trouble as investors had previously thought.

However, Moody's announcement of a possible downgrade on Spain dragged the market rapidly down in final hours of trading.

Moody's Investors Service, the only one who still holds Spain' s top credit ranking in three major rating firms, said it was putting Spain's rating on review as "deteriorating" growth prospects and the challenges the government faces to achieve its fiscal targets.