12 Jul, 2011 - FTSE sheds 1.7%, Nikkei 1.4 %, as contagion fears spread FTSE sheds 1.7%, Nikkei 1.4 %, as contagion fears spread The FTSE 100 was down by 1.7% this morning while the Nikkei has lost 1.4 percent in its biggest fall in a month, as stocks tumbled on concern that the euro zone's debt woes may spread to Italy, and amid a stalemate in US budget talks. No companies were showing gains in the FTSE 100, with banks leading the fallers, as Lloyds shares fell by 4.8%, Barclays 3.6% and RBS dropped 3%. Commodities stocks were also amongst the big losers with Tullow Oil down by 2.77% or 36p, and Xstrata down by 2.6% or 35.5p. Furthermore, futures indices suggest that more falls are expected on US stock markets, with the S&P 500 expected to fall 0.85% to 1,307. The S&P 500 was today pushed down by 1.81% to 1,319 and Eurofirst 300 down by 1.84% to 1,077. Meanwhile, European markets were hit harder, with the German DAX down 2.2% at 7,071 and the French CAC down 1.9% at 3,734. This morning Italian 10-year bond yields went above 6% for the first time, as fear mounts that the contagion in the euro-zone may spread to Europe's third largest economy. Last night euro-zone officials tried to contain fear by suggesting that that they could use the â¬440 billion bail-out fund, the European Financial Stability Facility, to buy back Greek debt
