The European Banking sector has been hit hard yesterday as markets worry about the sovereign debt they have on their books.

With rumours of France losing it's AAA rating, denied by Rating agencies, French Banks lost up to 15% with Italian Banks declining by similar amounts.

UK Banks did not escape the panic out of financials, with Barclays down nearly 9%, Lloyds 4% and RBS over 7%.

The volatility levels are extreme and look like remaining that way for some time.