European markets down over Spain's banking

European markets remained in a fragile mood Monday on concerns about Spain's ailing banking sector.

In the U.S., Wall Street was closed for Memorial Day.

Spain's main stock index closed at an almost nine-year low and interest rates on the government's 10-year bonds rose on concerns about the government's ability to sort out the country's banking industry. Nationalized lender Bankia, Spain's fourth largest lender, announced late Friday that it needed $23.8 billion in state aid to shore itself up against its bad loans.

Other European stocks indexes also mostly fell.

Despite the gloom surrounding Spain, investors found some cheer on weekend opinion polls that strengthened hopes of Greece sticking with the euro and the austerity measures of its bailout plan.

Greek stock markets rebounded strongly Monday from a 22-year low on hopes a pro-bailout party will win crucial national elections next month, which would avoid a catastrophic rift with international creditors and keep the struggling country within the euro currency union.

In mainland China, the Shanghai Composite Index climbed 1.2 percent and the smaller Shenzhen Composite Index shot up 1.4 percent.