Italian stocks plunge as borrowing costs soar

UPDATED: Milan's stock exchange opened sharply lower on Monday as investors grew increasingly spooked by the Greek crisis.

Italian stocks plunge as borrowing costs soar
People march in central Athens for a 'NO' at referendum and for Greece's exit from the eurozone on Sunday. Photo: Louisa Gouliamaki/AFP

Led by lower bank stocks, the exchange shed 3.44 percent by mid-morning, with the biggest hits taken by Unicredit and Intesa, Ansa reported. Trading in both had to be suspended at certain points due to excessive volatility.

Meanwhile, Italy and Spain's borrowing costs on international bond markets soared at the start of trading on Monday because of the crisis.

The yield on the benchmark ten-year bonds for Italy rose to 2.598 percent, compared with 2.110 percent at close on Friday, while Spain's rose to 2.720 percent, compared with 2.150 percent at close on Friday.

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