Markets have fallen across Europe amid fears that the Eurozone debt crisis will prove contagious and spread to Italy and Spain.
Italy’s main index was down three percent in early trading, along with that of Spain by 2.7. At 1.6 percent and 1 percent respectively, the losses were slightly less on Germany’s Dax and the UK FTSE.
The concern is that Italy and Spain may have to join Greece, Portugal and the Republic of Ireland in seeking a bailout from the EU and IMF.
The euro is also nosing down on the fears, falling to a four-month low against the dollar.