Italy

Global markets received a much needed shot in the arm overnight as Italian prime minister Silvio Berlusconi's resignation offer reassured investors an end to the country's problems may be in sight.

Markets moved lower on Monday as fears over Greece and Italy remained despite the imminent formation of a Greek coalition government.

Italian MPs became embroiled in a punch-up in parliament after a party leader's wife was dragged into the debate about pension reform.

The Treasury Select Committee (TSC) has issued a stark warning to the Bank of England and Financial Services Authority that they would be held accountable should mistakes made now "aggravate" a second financial crisis.

Italian and Spanish government debt have both been downgraded by the Fitch credit rating agency.

Ratings agency Moody's has downgraded four iShares fixed income ETFs with exposure to Italian government debt.

Italy's credit rating has been slashed by ratings agency Moody's, piling more pressure on the beleaguered eurozone.

Italy has had its sovereign debt rating cut by ratings agency Standard & Poor's as the European debt crisis rumbles on.

Ratings agency Moody's has extended its review of Italy's Aa2 credit rating by a further 30 days as it assesses the country's financial position.

The FTSE 100 has slipped back into the red mid morning as poor performance from the banking and mining sectors weighed on the index.