(ANSA) - Milan, September 27 - Markets slumped across
Europe on Friday, dragged down by increasing concern that
Italy's fragile coalition government may not be able to survive
the current political turmoil it is facing.
Italy's Ftse Mib index fell 1.2% to 17,646 points.
Investors reacted to the turmoil hitting the Italian
government Friday, with yields climbing and the spread between
Italian bonds and their ultra-safe German counterparts.
The spread between Italy's benchmark 10-year bond and the
German equivalent widened to 264 basis points near the end of
trading on Friday after gradually widening throughout the day.
The yield on Italian 10-year bonds rose to 4.41%.
The spread is a useful gauge of market confidence in
Italy, and its widening suggests investors are worried about
growing threats to Premier Enrico Letta's shaky coalition
The Frankfurt Dax bourse was little changes at 8,661, as
was the Paris Cac 40 Index which closed at 4,186 points.
Madrid's Ibex index dropped 0.5% to 9,228 points. London's
Ftse-100 stock market dropped 0.8% to 6,512.