The eurozone crisis intensified on Friday when Spain and Italy were downgraded by the ratings agency Fitch, heightening fears over the health of Europe's banks.
The move ended a three-day rally on Wall Street and erased early gains on the stock markets that followed better-than-expected US employment figures.
The euro fell against most major currencies, piling fresh pressure on European politicians to restore confidence in the single currency. Germany's Angela Merkel said Europe needed to find a solution for its banks by 17 October. Analysts from Capital Economics estimate the total financial package may top €200bn (£172bn).
Merkel and Nicolas Sarkozy of France are due to meet in Berlin on Sunday to discuss the crisis, with bank recapitalisation expected to be at the heart of their negotiations.
The cut on Italy – to A-plus from double-A-minus – leaves its rating four steps down from the coveted triple-A designation. Fitch said its outlook on the country is negative, implying more cuts to come. The agency said that Italy's high level of public debt and low rate of potential growth renders its economy especially vulnerable to external shocks.
The next map shows the ratings for eurozone countries with data from Fitch, Moody's and Standard and Poor's: