Benchmark of the Italy, the FTSE Mib, closed 3 5pc in that rushed political concerns in Rome threatens the financial stability of the country. CAC 40 Index the France also suffered, dropping 1. FP6 and the Germany DAX lost 0. 9pc. In Spain, the mountain goat fell 2. FP6, while PSI 20 of end Portugal 1. lowest 3pc.
The flight of the Italian government debt saw the yield or return, on its 10-year bonds touch 5 3pc, a euro-ère high.
Mike Riddell, a manager of M & G Fund, described the situation as a "bloodbath". "What is your point of view is or has been [the Italy finance], the reality is that these damned link militia took a view of the Italy, and which is basically all that into account,"he says. ".
Investors are worried that the Italy Finance Minister Giulio Tremonti is threatened by charges of corruption against a former Wizard and seems to have lost the support of Prime Minister Silvio Berlusconi. "It think that it is a genius and that everyone is stupid," said Mr Berlusconi yesterday.
It is feared that if Mr Tremonti was forced to Government it could derail the austerity measures he pushed through to shoot huge debt of the Italy, which rises to its GDP 120pc autour.
Who should leave the Italy in great danger to be sucked into the turmoil which swept the Greece and the Portugal, as doubts about their finances given the closure of the international debt markets.
Mario Draghi, top central banker of the Italy and the next President of the European Central Bank, have tried to provide comfort with a statement of support from the austerity of Rome as "credible".
However, markets were already unstable after the rating agency downgraded Moody debt of the Portugal to junk status earlier this week and disappointing U.S. post numbers did nothing to calm the nerves.
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