Britain’s upcoming in-out vote on Europe has today started to weigh on markets, with the FTSE 100 falling by 1.5 per cent this morning. But Europe’s top markets are taking a bigger hit, amid fears Britain’s exit from Europe would have significant consequences for the union. Germany’s top market the DAX plunged by 2.4 per cent, while France’s CAC dropped by 2.17 per cent and Spain’s IBE was down by 2.6 per cent.

Michael Hewson, chief market analyst at trading platform CMC Markets, said: “The belief that the Euro area can carry on regardless is to coin a phrase used by the Prime Minister recently “for the birds”. “The effect on confidence in Europe could shatter as well, if the continents second largest economy concludes the current arrangement is unworkable, and votes to leave. “This ought to be something European politicians should consider when they talk about the consequences of a UK exit, as there will be consequences for European cohesion as well.” READ MORE