Exchange traded funds tracking the euro and global stocks fell sharply Monday as fresh credit jitters shook markets in Italy and Spain.

CurrencyShares Euro Trust (NYSEArca: FXE) plunged nearly 2% on concerns the Eurozone debt crisis is spreading to the weaker nations in the periphery. Reports that European officials are resigned to at least a partial default on Greek debt also rattled nerves Monday. [Euro ETFs Dive]

SPDR S&P 500 ETF (NYSEArca: SPY) was down 1.5% at last check as investors also sold U.S. stocks. In sectors, PowerShares Dynamic Media (NYSEArca: PBS) slipped as top holding News Corp. (NasdaqGS: NWSA) tumbled 6% on reports the company is withdrawing its bid for BSkyB.

Volatility-linked ETFs rose Monday along with Wall Street’s fear index. VelocityShares Daily 2X VIX Short-Term ETN (NYSEArca: TVIX) rallied 14%.

CurrencyShares Euro Trust

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