Italian crisis gives European markets the jitters

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Concerns about the economic crisis hitting Italy made investors on the Damrak stock exchange in Amsterdam jumpy on Monday. As a result figures went deep into the red.

Financial shares all over Europe fell sharply. The AEX index closed down 1.9 percent at 336.16 points. The MidKap-index fell 2.7 percent at 583.58 points. London's stock exchange fell just 1 percent, doing relatively well. Frankfurt and Paris both fell 2.7 percent. Milan dropped 4 percent.

Although the Italian economy is doing well and does not have a large budget deficit, the country does have serious debts. The price of Italian government bonds came under more pressure on Monday. On Friday, state loans, as well as the Italian stock exchange and bank shares fell sharply. As a result, the financial markets all appear to be watching the latest financial hotbed.

"Italy issued a warning today. As one problem is solved another arises. The debt crisis is muddling on," said private banker André Sirks of Theodoor Gilissen.

The euro fell under the 1.40 dollar. At the end of the day, the euro was worth 1.4035 dollar compared to 1.4250 dollar on Friday.

Bank and insurance company ING and insurer Aegon experienced the biggest drop losing 7.3 and 4.4 percent in the AEX. Bank and insurer SNS Reaal fell 5.6 percent in the MidKap. Insurance company Delta Lloyd dropped 3.8 percent.

Dutch owned Swedish Automobile lost almost 17 percent. There are doubts whether the ailing Saab car maker will be able to restart production next month.

© Radio Netherlands Worldwide

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