Stock markets slumped and the euro hit a fresh 11-month low against the dollar amid renewed fears that Europe will be forced to rescue Italy and Spain from a lending boycott by international investors.
The FTSE index of Britain's top 100 companies dropped 2.25% to lead falls on continental exchanges and the US markets in a day of volatile trading. France's CAC 40 was the worst performer among major European indexes, falling 3.3%, followed by Italy's FTSE MIB, which dropped 2.8%.
Investors singled out Italy for more pain as they sent the interest rate on the all-important 10-year bond past 7% to hit 7.17%. The euro fell to €1.30 against the dollar, the lowest since January. » | Phillip Inman, economics correspondent, and Ian Traynor in Brussels | Wednesday, December 14, 2011
THE GUARDIAN: Why the euro is taking a pounding: The Brussels summit did not produce a plan to save monetary union, the eurozone is heading for a double-dip recession and safe-haven plays are benefiting the US dollar and sterling » | Larry Elliot, economics editor | Tuesday, December 13, 2011
