After an initial burst of enthusiasm, market movements today reflected the continuing concern about eurozone debt, despite the 100bn-euro bailout of Spain's banks announced yesterday.

Borrowing costs for Italy and Spain both rose, and ratings agency Fitch downgraded two Spanish banks, Santander and BBVA, two notches from A to BBB+, forecasting that the country would stay in recession for the remainder of this year and for the whole of 2013, directly affecting the banks' volume of activity in Spain.

Stock markets worldwide had opened higher after the Spanish deal but their initial enthusiasm later faded.

New York's Dow Jones, up 0.7% on opening, was negative by mid-afternoon. London's FTSE 100 started strongly but closed down 2.7 points. The French and German indexes were little changed.

The exact amount of emergency funding that Spain will receive will be decided after two audits of its banks are completed within the next few days.

Speaking at the European Parliament in Strasbourg, the EU's economic and monetary affairs commissioner Olli Rehn (pictured) re-iterated that Spain would not have to implement any new austerity measures in return for receiving financial aid.

"Policy conditionality will focus on the financial and banking sector," Mr Rehn said.

"There will be no new conditions on fiscal policy and structural reforms because these issues are dealt with under the reinforced economic governance and there, the normal policy conditionality applies."