LONDON (AFP) –- Global stock markets dropped further and the euro struck a new one-year dollar low on Wednesday as markets feared that Greek's severe debt problems could spread to other eurozone nations.

“Even as the IMF and the eurozone have virtually finalized an unprecedented three-year financing package of 110 billion euros for Greece, financial markets remain unimpressed,” said Nouriel Roubini of analyst group Roubini Global Economics.
The “common currency continued to plunge … and long-term government bond yields in Greece and in the periphery countries, including Italy, spiked upward again after a short relief rally before the agreement.”
Financial markets have come under heavy pressure after eurozone finance chiefs had over the weekend approved an unprecedented three-year package of loans for debt-ridden Greece.
Of the 110 billion euros (145 billion dollars) to be made available to Greece, the eurozone is set to provide 80 billion and the International Monetary Fund 30 billion.
And in a policy U-turn, the European Central Bank agreed to accept Greece's junk-rated government bonds as collateral for loans.