Markets Plummet after Italy Rejects Austerity
World markets retreated Tuesday as a big vote for anti-austerity parties in Italy's elections left the eurozone's third biggest economy in political deadlock, sparking fears of a revival of the region's debt crisis.
European stock markets were sharply lower, led by nearly a 5% plunge on Italy's index of leading shares. Italy's borrowing costs increased, as the yield on its 10-year bond moved toward 5%, triggering similar moves in weaker eurozone states such as Spain and Portugal. The euro was little changed against the dollar to just above $1.30 after being lower earlier in the day