Photo: Wikimedia COmmons
European markets in Spain and Italy tanked today, hit by negative headlines from all sides. The German DAX, British FTSE 100, and French CAC limped along, weighed down by the periphery.Last month’s optimism seems to have vanished since the start of 2012.
CAC 40: -1.36%
FTSE 100: -0.78%
FTSE MIB: -3.65%
The euro has also fell below $1.28 for the first time since September 2010.
Austria is the surprising new target of investor angst with yields on Austrian 10-year bonds hitting 3.37%, up more than 30 basis points this week alone. That’s because of its high bank exposure to Hungary, which appears to be nearing catastrophe.
Elsewhere on the Continent, Italy is once again under fire. Equities losses were spurred on by shares of UniCredit, which fell 16.9% today. The troubled European bank is trying to raise new capital, but had to offer the shares at a super-cheap price.
Not to mention that Italian PM Mario Monti made a surprise trip to Brussels, freaking out investors ahead of important scheduled meetings between he, German Chancellor Angela Merkel, and French President Nicolas Sarkozy next week.