LONDON Feb 26 Euro zone shares sank to three
month lows on Tuesday after an Italian election stalemate
renewed concerns about the future of the euro zone and sent
investors in search of insurance against a deeper sell-off.
No group managed to secure a majority in the Italian
parliament, heralding weeks of political uncertainty and raising
the prospect of a government between sworn enemies - the centre
right led by former prime minister Silvio Berlusconi and the
centre left under Pier Luigi Bersani.
Italy's benchmark FTSE MIB index sank 4.9 percent, posting
its biggest daily fall in nearly a year.
The EuroSTOXX 50 index provisionally closed down 3.1 percent
at 2,570.62 points, its lowest finish since Nov. 28.
The move extends the euro zone blue chip index's retreat from an
18-month high of 2,754.80 points hit at the end of January.
"It introduces a whole range of uncertainty at a time when
the markets were quite toppy anyway and were probably ready for
some sort of correction," said Paul Jackson, strategist at