Milan bourse suffers losses, spread climbs amid govt turmoil
Money markets react to PdL ministers quitting30 September, 10:30
After less than an hour of trading, Milan's benchmark FTSE Mib index dropped 1.9% to 17,303 points.
Among the biggest losers were Italian banks, with Intesa and UBI down 3.9% and Unicredit shedding 3.7%.
Shares in centre-right leader Berlusconi's Mediaset company dived 3.6%.
The spread between the 10-year Italian bond and the German benchmark, a key measure of investor confidence and of Italy's borrowing costs, was hit by the turmoil too.
The spread, which closed at 264 basis points on Friday, shot up to 288 basis after the opening of business.
It then dropped back to 279 points with a yield of 4.55%.