The eurozone debt crisis intensified on Friday amid the first serious signs that contagion is spreading to Italy, the currency club’s third biggest economy.
Italian bond yields, which have an inverse relationship with prices, leapt to nine-year highs and the country’s stock market and bank shares tumbled.Worries over Italy also hit the euro, which fell nearly 1 per cent against the dollar. Investors raised concerns that problems in Rome could put the eurozone project in doubt, as Italy is considered too large to bail out.
Ken Wattrett, chief eurozone economist at BNP Paribas, said: “The mood in the eurozone has changed for the worse this week, with increasing fears of contagion and worries that the crisis could deepen.
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