At noon on Wednesday, Italy borrowed bonds for five years at the rate record of 6.47% and this gave rise to a real sell-off in equities and the euro, which was found at its lowest for almost a year now, at $1.2950, before recovering to the psychological barrier of $1.30.
The DAX index in Frankfurt closed at -1.72%, the FTSE 100 in London at -2.25% and the FTSE MIB in Milan at -2.84%, while losses at Paris exceeded 3.3%.
Late on Wednesday evening, Dow Jones crossed the line with a drop of 131 points, or 1.1%, to 11,823 units. The transfer of funds in U.S. dollars resulted in a significant decline for gold at $1,576 per ounce, while the oil price is at $95 per barrel.
This is occuring amid estimates by fund managers about the possibility of an immediate breakup of the Eurozone.
Beyond the chaos in the European debt crisis, the resignation of the No2 in the German liberal party indicates elections and dethronement for both Merkel and Sarkozy.
Pressure on Greek banks
Earlier, Athens registered a new intraday 19-year low record (651 units), reminding even the most optimistic that the bitter solution and the worst for the country are still ahead. Greece will face the dilemma of the euro or the drachma, and it will be the worst for public service staff: you either lay off 200,000 employees or you go back to 2001…
Finally, the ASE general index closed at 659.62 points, recording an increase of 0.44% thanks to purchases of Coca-Cola and PPC shares, which showed gains of 5.57% and 3.19% respectively. The Bank of Cyprus also showed profit at 0.62% and 3.35%.
In contrast, Alpha Bank lost 3.60% and National Bank 3.80% at 1.52 euros.
6.53% collapse for Marfin Popular, 6,54% for TT Hellenic Postbank and 3.37% for MIG.