Italy Hatching Snap Elections Drives Traders to Seek Cover
- Stock index had biggest 2-day drop since April on Monday
- Yield spread widens on Italian 10-year bonds versus Germany’s
Italian Markets Worry About Early Elections
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Italian markets shuddered at the emerging prospect of early elections.
Investors dumped stocks and government debt after ruling Democratic Party leader Matteo Renzi signaled the possibility of a vote in September or October, more than six months ahead of schedule. That pushed the nation’s bond-yield spread over Germany to its highest in almost four weeks today, and the benchmark FTSE MIB stock index to its biggest two-day drop in more than five weeks on Monday, led by banks.