CONFIDENCE in Italy’s banks and the wider economy is falling apart, as investors continue to digest Britain’s vote to leave the European Union (EU).
Pointing to real fears over the future of the bloc, Europe’s top stock markets have failed to recover from the shock of the Brexit vote.
In stark contrast, Britain’s premier index the FTSE 100 has left its continental counterparts in the dust.
Meanwhile, Germany’s DAX and France’s CAC remain down around six per cent from Thursday’s close before the referendum.
But the the biggest concern is Italy where markets still down 11 per cent amid fears over the stability of the country’s banks and knock-on affects on the economy.
The Italian banks index is down by a whopping 26 per cent – or only just above record lows seen in 2012.
Italian authorities are struggling to restore confidence amid around £270billion of bad loans sitting in their banks’ books.
The government suffered another setback yesterday after German Chancellor Angela Merkel ruled out allowing Italian policymakers to pump tens of millions of euros into the banking system to help stabilise it.
Full article: ITALY ON THE EDGE: Italian banks face further losses as investor fears grow over debt (Express)