Markets turn south as Monti exit sends bond yields soaring

The decision by Mario Monti to stand down as Italian Prime Minister earlier than planned has caused markets to fall across Europe today, and led to a spike in Italian bond yields.

Monti had been due to step down at the time of the next Italian election, scheduled for April next year, but said this weekend he will resign once the Italian budget is passed - an event expected to take place by the end of the year. Monti made the decision after losing the support of former PM Silvio Berlusconi's People of Liberty party, the largest in Parliament. Berlusconi has already said he would run for Prime Minister again in the ensuing election, despite the fact he was recently sentenced to four years in jail for his part in a six-year old tax fraud case. Monti (pictured) ...