Eurozone fears reignite on Italian election shock

European bond and stock markets saw a sharp sell-off on Monday after a shock result from the Italian election, where no political group managed to win a majority vote.

While the centre-left coalition led by Pier Luigi Bersani won the lower house, the party did not gain a majority vote in the upper house necessary for an overall victory. Meanwhile, the Five Star protest movement of comedian Beppe Grillo emerged as the strongest party in the country and Silvio Berlusconi's centre right bloc threatened to challenge the close tally. The result will see the country face a political stalemate as competing parties attempt to form a functioning government. As the results of the election appeared to offer no end to the eurozone crisis, investors were quic...