European markets drop once again

European markets are experiencing the biggest one-day loss after the prime minister of Greece has decided to hold a referendum on the latest bailout agreement, Reuters reports.
The FTSEurofirst 300 index of top European shares was down 3.8 percent at 958.71 points at 1200 GMT. The index fell below the 961.45 support level, a 38.2 percent retracement of the rally from September 22 to October 30.
The Euro STOXX 50 volatility index , Europe's main barometer of anxiety known as VSTOXX index, was up 17 percent and above 40, signalling a sharp rise in risk aversion.