European Stocks Sink as Debt-Crisis Contagion Threatens Italy
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European stocks tumbled the most in seven weeks, led by banks and insurers, as contagion from Greece’s debt crisis threatened to spread to the bigger economies of Italy and Spain.
Italy’s FTSE MIB Index plunged the most in more than a year, entering a bear market as its slide from this year’s high exceeded 20 percent. UniCredit Spa and Intesa Sanpaolo SpA lost more than 6 percent and Germany’s Commerzbank AG sank to a two-year low as a gauge of banks had the biggest two-day drop in 14 months. British Sky Broadcasting Group Plc fell as the U.K. government referred its purchase by News Corp. to regulators.