Even the growth of gold and dollar could not control the fall of financial markets and the worst part was that Italian bonds saw decline for consecutive 11th day.

This has put situation in dilemma as on one side European Commissioner Mr. Manuel says everything is fine, but figures at the stock board narrate some different story which is quite depressing. Not only has this, but the defeat of Angela Merkel’s party in Germany also added fuel to the fire and has made the debt condition even grimmer.

It seems there is no end to the problems as one problem is piling up over another. The recent one is regarding the law suit filed against big banks like Bank of America to recover mortgage security which is about 196 billion dollars for Fannie Mae and Citigroup Inc.

To talk about the performance: the Stoxx Europe 600 Index fell by 3%, even the Standard & Poor’s 500 Index fell by 1.2%. Not only Stoxx but its 19 companies also showed downfall and some of the many which faced the downfall are Deutsche Bank AG and Barclays Plc.

Due to the debt of 25 banks, the Markit iTraxx Financial Index also faced the downfall. The biggest drop was of Clariant AG which fell by 14% and is said to be largest in Stoxx 600.