Markets in panic mode as Italy and Spain ban short-selling

Italian and Spanish authorities both moved to ban short-selling today after shares plunged across the globe on fears Greece will fail to meet bailout pledges.

Italian and Spanish equities are both off sharply, with the FTSE MIB down 4.1% at 12,533 points, and the Spanish IBEX 2.6% weaker at 6,087. Other equity markets are also in the doldrums, with the FTSE 100 down 2.4% at 5,518. The US has also opened weaker, with the S&P 500 down 1.5% at 1,341, and the Dow off 1.7% at 12,599, down over 200 points. In response to the latest sell-off, Italy today banned short-selling of its financial stocks until the end of the week. Spain then spooked nervous investors by introducing a market-wide ban on the shorting of all of its securities for an ...