European stocks close lower as Spain 8217 s debts rise

The major European stock indices look set to close lower this afternoon (September 18th) on news Spain's bad debts have reached record heights.

Figures from the Bank of Spain reveal the value of the troubled Iberian nation's bad debts held by its financial institutions in July now stand at €169.3 billion (£136 billion).

The central bank said 9.9 per cent of its banks' total loans were in arrears, up from June's 9.4 per cent.

This is the highest bad loan ratio since the country began compiling this type of data back in 1962.

Spain is yet to request a formal bailout from international lenders and the nation is assessing the conditions surrounding such a rescue from the European Central Bank.

At 16:45 BST, all the major European benchmarks were down, with the Ibex in Madrid tumbling 0.7 per cent to an index value of 8087.3 points, the Dax in Frankfurt slipping 0.4 per cent to 7368.6 points and the Paris Cac 40 losing 0.8 per cent to 2454.6 points.

Learn all about CFD trading strategies and the European stock market at City Index.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.