Total disaster in peripheral Europe today.

Both Spain and Italy are imploding today.

Spain is off 4%!

Italy is off 3.5%!

Here’s Italy’s FTSE MIB index.

UPDATE: Gavan Nolan of Markit reports that Spanish CDS hits 500 BPS for the first time ever.

That also puts the IBEX 35 at its lowest since 2009.

UPDATE II: Europe just with Italy and Spain off their lows but still down well over 3 percent. Here’s our European market roundup >