Major stock markets outside the United States ended on Monday.
"The Spanish market is suffering more than the rest due to the weakness of the construction and property sector, which is affecting the banks and also the consumption sector (because of the perceived impact on the overall economy)," said Christophe Ochsner, analyst at Madrid brokerage Venture Finanzas. Morgan Stanley said it was still upbeat on European equities but warned of temporary setbacks.
"This is still a bull market, as bull markets run from one recession to the next," the US investment bank said, adding: "For the next three to six months, we expect a pause in the ongoing bull market, with possibly a significant correction." The FTSEurofirst 300 index of top European shares ended at 1,619.93 points, a loss of 0.37 percent, after earlier hitting 1,630.69, its highest since November 17, 2000.