Germany Down And Italy Up

The DAX fell 1.6 percent and the CAC 40 was off 0.7 percent. Meanwhile, the Italian FTSE MIB was 0.4 percent higher and the Spanish IBEX 35 had risen 0.8 percent.

Yields on Italian and Spanish 10-year bonds were flat on the day after rising earlier, suggesting some hope that EU leaders might take measures to address pressures in peripheral bond markets.