Spain's markets began trading strongly on Monday after news of the last-minute €10-billion Cyprus bailout agreement.
After a ten-hour meeting that ended in the early hours of Monday morning, Europe's finance ministers agreed to bail out the island's economy if it renounced its position as a fiscal paradise.
Bank account holders in Cyprus with less than €100,000 in savings will now see their deposits guaranteed while others holding more than this amount can expect a serious hole to open up in their bank account.
Markets climbed on the back of the announcement with Spain's key IBEX 35 index climbing nearly 1.5 percent in morning trading.
The upswing was short lived, however, with markets doing an about turn after Eurogroup head Jeroen Dijsselbloem commented that the Cyprus rescue should be seen as "a template for the rest of the eurozone".
These comments saw the Ibex 35 index down 2.5 percent by 4.30pm on Monday.
At its peak on Monday, Spain's key ibex index hit a high of 8,461 points. At 4.35pm, that figure was 8.105,50.
The euro, meanwhile, dropped 1 percent against the dollar to be valued at $1.2874.
The first tranche of the European bailout for Cyprus will be delivered in May.