European shares fell and the euro hit a seven-week low on Friday, as a spiralling debt crisis and the lack of a comprehensive policy to contain the damage sapped investor confidence. Bond market borrowing costs grew for the governments struggling most after two years of debt turmoil, with appetite for Italian short term debt set to be tested at an auction later in the day. Italy will sell up to 8 billion euros of 6-month treasury bills with yields indicated at 5.85 percent in the grey market late on Thursday. That compared with a gross yield of 3.535 percent at the last sale of 6-month bills a month ago, and ... (full story)