PARIS, Sept 30 (Reuters) - European shares sank in early
trade on Monday, falling for the fifth time in seven sessions,
as a new political crisis in Italy and the prospect of a
shutdown of the U.S. government rattled investors.
At 0708 GMT, the FTSEurofirst 300 index of top
European shares was down 0.7 percent at 1,245.47 points. Italy's
FTSE MIB dropped 2 percent.
Political instability in Italy deepened on Saturday when the
five Cabinet ministers who are from former Prime Minister
Berlusconi's party suddenly stepped down, threatening to bring
down the government and force new elections seven months after
the last vote.
Euro zone banking stocks were among the most hit, with the
sector index losing 2.6 percent. Banco Popolare was down 4.5 percent, Commerzbank down 2.5
percent and Societe Generale down 1.8 percent.
In Washington, chances that Republicans and Democrats could
reach a deal on funding the government before the fiscal year
ends at midnight on Monday seemed increasingly thin.
On Sunday, the Republican-controlled House of
Representatives passed a measure that ties government funding to
a one-year delay of President Barack Obama's landmark healthcare
restructuring law, while Senate Democrats have vowed to reject
(Reporting by Blaise Robinson; Editing by Toby Chopra)
Keywords: MARKETS EUROPE STOCKS/
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