Italian election deadlock rocks markets

Europe's leading equity markets took a beating yesterday as elections in Italy resulted in political deadlock.

Italy's FTSE MIB fell 4.9% in yesterday's session, while the German Dax shed 2.27% and the French Cac dropped 2.67%. The FTSE 100 closed 1.34% lower at 6,270. European stock market volatility hit a 2013 high after the outcome of the election, which saw neither party get a clear majority. Europe's VSTOXX index, which reflects demand for protection against a drop in major European equities, hit a new year's high at 24.73 yesterday. The elections also weighed on oil prices, with Brent crude oil futures falling 1.5% to $112 a barrel. However, US equity markets escaped the volatility se...