Fears About Possible Political Uncertainty in Spain and Italy Lowered Markets

As of February 4, European stock markets sharply fell because of the following reasons: 1) Decline in Vodafone Group Plc. shares due to the downgrade; 2) Concerns related to the possible political uncertainty in Spain and Italy. While corruption claims for Prime Minister Mariano Rajoy in Spain caused to losses, the latest polls showed that Berlusconi’s votes increased. These two main political concerns led the European markets lower. FTSE100 and DAX fell by 1.58% and 2.49%, decreasing to 6,246.84 and 7,638.23, respectively.