Nov. 9 - It is shaping up to be a nasty day on Wall Street with investors not convinced a planned change of leadership in Italy is enough to stop the European debt crisis from spreading. Conway G. Gittens reports.
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Wall Street is saying "arrivederci" to the gains seen so far this week as confidence takes a big hit.
Investors are growing more and more nervous that Italy, Europe's third largest economy, will fall prey to a two-year debt crisis.
Yields on a 10-year Italian government bond touched above 7 percent on Wednesday, a level considered in the danger zone.
Kenneth Polcari is a managing director at ICAP Corporate.
SOUNDBITE: KENNETH POLCARI, MANAGING DIRECTOR, ICAP CORPORATE (ENGLISH) SAYING:
"The situation in Italy is turning, is getting near the brink, the way it was with Greece, Portugal and Ireland when they had to go to the European Central Bank and the IMF for bailouts. And the problem with Italy is: it's too big. If you take those other three countries and put them together they are still not as big as Italy and so if Italy starts to run into a problem, the fear is that they are not going to be able to contain it and that's why you saw the markets back off today."
On the floor of the New York Stock Exchange, the selling was so intense in afternoon trading that for every 10 stocks down, only ONE was up.
Conway Gittens, Reuters
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