Italian stocks drop 3 percent as bank shares slump
MILAN: Italian stocks dropped more than 3.0 percent on Monday in line with losses elsewhere in Europe as bank shares slumped over concern about Italy's debt.
The benchmark FTSE Mib index was down 3.26 percent at 16,110 points at around 1520 GMT. Banca Monte dei Paschi di Siena dropped 7.30 percent, Intesa Sanpaolo was down 6.89 percent and UniCredit fell 5.51 percent.
Other sectors also suffered with auto giant Fiat losing 6.73 percent, cement company Buzzi Unicem down 5.79 percent and cable maker Prysmian falling 4.40 percent.
After a bond auction on Friday that saw Italian borrowing rates spike, bonds were again under pressure on Monday -- a sign of increased investor fears.
The yield on Italian 10-year government bonds is now above six percent -- a level that is considered difficult to sustain in the medium term.
Copyright AFP (Agence France-Presse), 2011
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