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European markets plunge after Italian election deadlock

  • European stock markets plummeted on Tuesday on the back of an inconclusive election result in Italy.

    Italy's FTSE MIB index dropped 4.9 percent while London's FTSE 100 was down 1.3 percent. Stock markets in Frankfurt and Paris shed well over 2 percent each.

    The yield on Italian government bonds also increased, meaning that markets are more wary of lending to the country.

    With all votes counted in Italy's parliamentary election, the center-left bloc marginally won the lower house but failed to secure a majority in the Senate.

    Fears are mounting that a split parliament will make it harder to push through economic reforms, which in turn may delay Italy's process of lowering its public debt.

    Know some quick facts about Italy through Italy Fast Facts