The rescue of Ireland’s banking system and the fears of contagion to the economies of Spain and Portugal have sent the IBEX 35 index tumbling Tuesday.

Spain’s IBEX 35 lost 304.60 points Tuesday as it closed at 9,691.80 points, closing with a 3.05% loss. The index has accumulated losses this year of 18.83 per cent.

Stocks dropped throughout the index with Banco Santander losing 4.73%, BBVA 3.90%, Repsol 3.85%, Telefonica 3.21% and Iberdrola 2.99%.