European stocks and euro down on contagion fears
Fears for Italy becoming the next victim of the euro zone debt crisis sent stocks down today.
The euro dived to a record low against the Swiss franc and fell to a four-month low against the Japanese yen.
An emergency meeting took place today in Brussels as EU officials met to discuss the ongoing debt crisis in the euro zone after fears for Italy increase.
There are concerns that Italy, which is the euro zone’s third largest economy, could be dragged into the debt crisis, as it has the second highest sovereign debt ratio in the region.
Furthermore, the yield on Italian bonds continue to rise to levels that could put pressure on Italy’s public finances, according to analysts.
In addition, investors are concerned that Italy’s banks will not pass stress tests – results are due on Friday.