European stock markets rocked by panic selling as debt crisis reignites

Investors demanding high premiums for holding Italian and Spanish bonds as fears of double-dip recession grow

, and in Madrid/The Guardian, Tuesday 10 April 2012

Eurozone crisis

Stock market panic selling led to shares falling across the world with the FTSE100 down 128 points. Photograph: Frank Baron for the Guardian

Europe‘s sovereign debt crisis exploded back into life on Tuesday, with markets across the continent rocked by a wave of panic selling amid renewed fears about the impact of savage austerity measures in Spain and Italy.

The mood of uneasy calm seen across Europe since the Greek bailout in February was shattered as financial markets took fright at evidence of a double-dip recession and growing popular opposition to welfare cuts and tax increases.  More…

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