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Italy shares, bonds sink as shock vote reignites euro fears
Feb 26th 2013, 12:13

MILAN (Reuters) - Italian stocks and government bonds fell sharply on Tuesday, after a parliamentary election left Italy facing political deadlock and rekindled fears of a new euro zone debt crisis. Shares in the main stock market index fell 4.6 percent, dragged down by losses of up to 10 percent on banks such as IntesaSanpaolo and UniCreditMI>, big holders of Italy's 2-trillion euro ($2.6-trillion) state debt. The premium the Italian government pays compared to Germany to borrow for 10 years widened to a peak not seen in two and a half months, hitting a yield spread of 348...

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