Italy

Yields on 10-year Italian government bonds sold at auction have spiked to their highest level since the creation of the euro, as investors continue to fret over the health of the country despite yesterday's rescue deal.

EAST OR WEST...

Italian and Spanish government debt have both been downgraded by the Fitch credit rating agency.

Ratings agency Moody's has slashed Italy's credit rating, piling more pressure on the beleaguered eurozone.

Italy has had its sovereign debt rating cut by ratings agency Standard & Poor's as the European debt crisis continues to rumble on.

Ratings agency Moody's has extended its review of Italy's Aa2 credit rating by a further 30 days as it assesses the country's financial position.

Stocks in the US and Asia rallied overnight after Italy turned to China for help with its debt crisis.

Fears over Italy's ability to push ahead with fiscal reforms have pushed bond spreads back up towards record levels as investors rush to safety once more.

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