Markets rocked by eurozone contagion fears

All major global indices posted substantial losses in early trading over growing concerns the debt crisis in the eurozone may spread to Italy and Spain.

In London the index of 100 leading shares slipped 1.38% or 82 points to 5,847 at 8.50am as Italy showed increasing signs of being drawn in to sovereign debt contagion. Spreads on 10-year Italian bonds reached a decade high at the close of trading yesterday, hitting 5.7% and causing turmoil in markets. Elsewhere in Europe the Dax is down 1.98% to 7086, while the Cac has fallen 1.75% to 3,741. The euro continued to post heavy losses against the dollar, down 1.19% to $1.38, hitting a seven-week low. Across the Atlantic, the Nasdaq closed 2% lower at 2,803, while the Dow Jones ended...