FRANCE AND ITALY ARE GETTING pummelled

italy riots, december 2010

Photo: AP

France’s CAC 40 and Italy’s FTSE MIB are both off over 2 per cent, with less than an hour left in European trading.Even the Spanish IBEX 35, which has been buoyed by rumours that a bailout for troubled bank Bankia is on the way, is still off half a per cent.

The sell-off appears to be led by Greece, where the Athens composite closed down 3.6 per cent. That was actually a comeback from earlier in the day.

Nonetheless, bond yields don’t appear to be significantly changed, climbing only slightly today.

The euro has also tested the $1.30 value against the dollar, however it remains above that benchmark level for now.

Watch below a report on how the new French president Francois Hollande may change the economic course in Europe:

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