Talk of a possible downgrade of Austrian debt by Moody's has added another element to the market's nervousness over Europe.
With uncertainty over Greece ahead of a vote of confidence in the government later, and Italian bond yields rising once more - to 6.4% - on worries it is the next country in the firing line, the last thing investors wanted to hear was rumour of problems with Austria. Although unconfirmed (and perhaps sstemming from news Moody's was reviewing Austrian bank Erste for a possible downgrade), the suggestion has helped push the FTSE 100 to its low for the day of 5510.95, down 34.69 after a bright start earlier.
The Dow Jones Industrial Average is around 150 points lower - with the ok-ish US non-farm payroll numbers soon forgotten - while the German market has fallen 2%, France 1.4% and Italy 2.8%.
Uncertainty over the G20's intentions - or otherwise - to increase the International Monetary Fund's resources, plus Germany's Angela Merkel saying few countries were likely to participate in the European bail out fund have all added to the uncertainty. Italy's Silvio Berlusconi has not helped either, by saying he refused an offer of financial help from the IMF. He also said he said there was no need for a new government, and he had a solid majority in parliament.
