Italy's stock exchange plunged more than 3 percent in afternoon trading Monday, as shockwaves from the unrest in Libya hit its former colonial ruler.
The benchmark FTSE Mib index fell 3.44 percent (793 points) to hit 22,266.
Shares in Italy's top bank UniCredit, in which Libya has a major stake, dropped more than 3 percent, while energy giant ENI, the biggest foreign oil producer in Libya, saw its share price plummet nearly 5 percent — despite company assurances that operations had not been affected by the recent violence.
European stocks extended their losses Monday following a televised addressed late Sunday by Libyan leader Moammar Gadhafi's son, Saif al-Islam Gadhafi, in which he warned Libyans to stop the uprising or face a civil war, risking the country's oil wealth