GLOBAL MARKETS: European Stocks Drop; Italy In Focus

- European stocks fall on fears that debt contagion may spread to Italy

- Investors dump equities, in particular banks, and favor bonds

- Euro falls against the dollar as debt worries escalate

- Attention on the EU group meeting in Brussels

By Michele Maatouk & Ishaq Siddiqi

Of DOW JONES NEWSWIRES

LONDON (Dow Jones)--European stock markets fell Monday, along with the euro, with investors worried that Italy may be the next domino to fall as the euro-zone debt crisis continues to unfold. As a result, investors flocked to the dollar and core European government bonds.