European Stocks, Euro Rocked by Italian Turmoil

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The political uncertainty in Italy slammed Italian bank stocks and government bonds, and knocked the euro down by almost 1% to a nearly one-year low vs. the dollar.

But Italy's borrowing costs fell sharply for the last two days as the country's efforts to form a coalition government are back on track.

"We got a lot going on", said Chris Gaffney, president of EverBank world markets.

Bond yields dropped, and with them, interest rates on mortgages and other kinds of loans, hitting bank stocks on expectations lenders would earn thinner profits.

Analysts were also getting more cautious of the dollar´s recent move higher - the greenback hit a 6-1/2 month high against a basket of its rivals earlier this week - on trade war fears and rising concerns the US economic momentum may soften.

Investors scurried into safe assets like USA government bonds. The Russell 2000 index of smaller-company stocks slid 2 points, or 0.1 percent, to 1,624.

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Gritsak explicó que las autoridades ucranianas captaron información sobre un complot ruso para matar a Babchenko . Lamento que hayan tenido que experimentar esto pero no había otra manera", ha afirmado el periodista ruso.

Rome's benchmark 10-year bond yield IT10YT=RR was down 33 bps at 2.68 percent too and the closely watched Italy/Germany 10-year bond yield spread tightened to 248 bps, as much as 22 bps tighter than the previous day's close. Eastern time. The Dow Jones industrial average lost 144 points, or 0.6 percent, to 24,608. Gold and platinum producer Anglo American traded 2.76% higher at 1,846.60 while Rio Tinto, Glencore and Chilean miner Antofagasta were also among the top ten movers higher.

U.S. Secretary of State Mike Pompeo and high-ranking North Korean official Kim Yong Chol will hold a second day of meetings in NY later as they try to set the stage for an historic summit between their two leaders.

USA crude futures fell 0.3 per cent to $68 a barrel after gaining 2.2 per cent on Wednesday when Russia's central bank expressed caution on plans to boost oil supply. The dollar rose to 108.24 yen from 109.37 yen. With uncertainty eroding buying sentiment towards the euro, the euro/U.S. dollar (EUR/USD) currency pair has scope to extend losses. At the beginning of May the yield was just 1.78 percent.

That country's parliament will hold a vote of no confidence in Prime Minister Mariano Rajoy after graft convictions of businesspeople and officials tied to his conservative Popular Party. The yield on the 10-year Treasury fell to 2.78 percent, its lowest since early April, from 2.93 percent.

Oil prices meanwhile struggled as expectations grew that Saudi Arabia and Russian Federation would pump more oil to counter potential supply shortfalls from Venezuela and Iran, even as USA output has surged in recent years.

Oil struggled under pressure from expectations that Saudi Arabia and Russian Federation would pump more oil to counter potential supply shortfalls from Venezuela and Iran, even as USA output has surged in recent years. The pan-European FTSEurofirst 300 index .FTEU3 lost 1.3 percent. The Nasdaq composite fell 37 points, or 0.5 percent, to 7,398. Hong Kong's Hang Seng rose more than 1% and MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.8% as it clambered off near two-month lows.

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