Italy bans short-selling

Italian market regulator Consob banned the short-selling of financial stocks for a week on Monday as the bourse plunged on fears the debt crisis pounding Spain is dragging Italy into the quagmire.

"Given the recent turn of events on the market, Consob has decided to reintroduce the ban on short-selling stocks in the banking and insurance-company sectors," the regulator said.

The ban, which came into effect at 11:30 GMT, will last until 16:00 GMT on Friday, after the stock market closes for the week.

AFP