Egypt political crisis sends cost of debt insurance soaring

By Robin Wigglesworth in London and Heba Saleh in Cairo

Egyptian financial markets have been rattled by a deepening political crisis in the pivotal Arab state, sending the cost of insuring against a government debt default to a record this week.

A combative speech by Islamist president Mohamed Morsi late on Wednesday plunges the market and failed to assuage fears that Egypt’s various political movements could clash violently at a planned mass demonstration of government opponents on Sunday.