...the real problem is Italy.
Snippet From The Financial Times today...
European shares dipped on Friday as fears of eurozone sovereign debt crisis contagion hit Italian financial stocks, some of which were briefly suspended on Milan’s FTSE MIB index for excessive losses.
Trading was resumed, however, and by late morning UniCredit was down 4.5 per cent to €1.28, Intesa Sanpaolo shed 2.5 per cent to €1.69, while insurer Unipol fell 4.6 per cent to €0.35.
Italian yields hit nine-year highs as investors dumped the country’s sovereign bonds for fear the crisis would hit its shores, even perhaps ahead of Spain. Of major concern to investors is Italy’s 120 per cent debt-to-GDP ratio.
“The signal that is being sent by the bonds of Italy and Spain where price action is suggesting that market contagion concerns might be shifting to Italy and skipping Spain,” said Divyang Shah at IFR Markets.