German DAX index sharply fell on Wednesday after Spain's downgrade. Surging Italian and Spanish borrowing costs weighted on investor sentiment. Italy sold its bills at higher yields than in previous auction. Moreover ECB rejected Spain's government plan to recapitalize Bankia SA through government debt. German car maker shares retreated from yesterdays gains and traded lower. BMW AG fell 2.3% while Daimler AG and Volkswagen AG each slipped 2%. At the moment of writing DAX 30 trades 1.3% or 82 points lower at 6,314.