The euro and stock markets across Europe have fallen, effect the eurozone debt crisis showing no sign of abating

The euro and stock markets across Europe have fallen, effect the eurozone debt crisis showing no sign of abating : Borrowing costs for heavily indebted governments also rose further, with Italy and Spain suffering. Market worries focus on a possible debt restructuring by Greece that could hit Europe's banks and other governments.

Latest bad news included weak eurozone economic data, a local election defeat for Spain's government and a negative credit rating outlook for Italy.

European stock markets fell sharply in morning trading, with the FTSE 100, Dax and Cac 40 indices all down 1.6%-1.9%, following sharp falls in Asia earlier in the day.

Energy and mining stocks did particularly badly, as the oil price fell back towards recent lows on fears the global recovery may be slowed by debt problems in Europe and tighter monetary policy in China.

Sentiment was not helped by the latest purchasing managers index for the eurozone - a survey of business expansion plans - which indicated that growth in France and Germany slowed significantly this month.

Meanwhile, the euro dropped two cents against the dollar, to below $1.40, bringing its total fall since Friday to nearly four cents. Against the Swiss franc - seen as a safe-haven from the debt crisis - the euro hit a new all-time low of 1.2324 francs. For the latest updates PRESS CTR + D or visit Stock Market news Today

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