European Markets Fall Over Greek Debt Concerns

“European stocks dropped to a one- month low after Spain’s ruling party suffered its worst election defeat in 30 years andStandard & Poor’s warned it may downgrade Italy’s debt. U.S. index futures and Asian shares retreated.

Banco Santander SA (SAN), Spain’s largest bank, and Italy’s Mediobanca SpA led a selloff in financial shares, both falling more than 1 percent. Commerzbank AG (CBK) lost 3.7 percent after the German lender announced a 5.3 billion-euro ($7.4 billion) share sale. Airlines tumbled after Ryanair Holdings Plc (RYA) reported earnings and a volcanic eruption in Iceland threatened to disrupt trans-Atlantic flights.

The benchmark Stoxx Europe 600 Index dropped 1.4 percent to 275.79 at 12:46 p.m. in London, erasing its gain for the year. The gauge fell last week after Greek 10-year bond yields climbed to a record and Fitch Ratings cut Greece’s credit rating to B+, four notches below investment grade.”

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