The rout in Italian assets is emitting fear to other regional assets
Italy's bank stocks are the biggest losers today and the drag there is also resulting in the weakest performance by the Stoxx 600 bank index too. The latter is seeing the biggest fall since 29 May which incidentally was caused by fears from Italy as well.
The fears arising here isn't really helping the euro as well with EUR/USD still sitting near the day's lows under 1.1600 currently.
For all the good work European equities have done for the month of September, it's all unraveling in the wake of today's losses and today's trading will set the tone as we head into Q4. At this point no one would really focus on the fact that most indices actually held up well in September trading - even after accounting for today's losses:
