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Market sends 'a message of no confidence in Portugal'

3 July 2013 Last updated at 15:20 BST

Portugal's borrowing costs have risen sharply amid fears of a growing political crisis in the country.

Yields on the country's benchmark 10-year bonds moved above 8% in early trading on Wednesday, while the stock market fell more than 6%.

Gilles Moec is a senior European economist at Deutsche Bank.

He said that the spike in borrowing costs for Portugal was "clearly a message of no confidence from the market".