Trading in Europe on Tuesday showed that the presence of Prime Minister-designate Mario Monti in Italy, and new leader Lucas Papademos in Greece, has failed to reassure investors; stocks and the euro were both down as Monti worked to put together a new government that would support austerity measures mandated by the European Union.
Other bad news included the opinion of a think tank that France’s financial situation should be setting off “alarm bells.”
Reuters reported that markets are concerned that neither Monti nor Papademos has the political or popular clout to push through measures considered essential by the EU to stem contagion.
In Europe, markets were down Tuesday: The DAX dropped 51 points to 5,933 and the CAC was down 59 points to 3,049.
A think tank report by Brussels-based Lisbon Council underscored the troubled atmosphere, calling attention to France’s inability to make quick economic moves in response to the debt crisis.