Markets plunge across world as Italian bond yields cross 7pc bailout barrier
WORLD markets plunged yesterday, as the increasing yield on Italian bonds threatened to overpower the eurozone.
The euro fell to its lowest level against the dollar in a month, while stockmarkets slumped across the board.
In Dublin, the ISEQ Overall Index closed 0.98pc lower while the UK's FTSE 100 lost 1.9pc. Germany's Dax Index retreated 2.2pc.
In New York, the benchmark Dow Jones Industrial Average dropped 3.11pc by late evening.
Despite Silvio Berlusconi's promise to resign, the yield on Italian bonds that mature in 10 years' time climbed to 7.25pc yesterday. The crossing of the 7pc barrier pushed Ireland, Greece, and Portugal, to seek a bailout.
"Italy may be too big to save," said John Higgins, an economist. "Things could be about to turn very ugly."