Italian Markets Slide as Mario Draghi’s Government on the Brink
- Italy’s yield gap to Germany at one-month high, stocks fall
- Moves may complicate ECB effort to avoid market fragmentation
Mario Draghi signaled that he would resign if Conte walked out on a vote.
Photographer: Alessia Pierdomenico/BloombergThis article is for subscribers only.
Investors are dumping Italian assets as political turmoil puts Prime Minister Mario Draghi’s government at risk of collapse and complicates efforts by the European Central Bank to support the market.
Italy’s stocks and bank debt led regional losses, while the yield on 10-year government bonds surged to increase the gap with German rates -- a gauge of risk -- to the most in a month. Traders will now be watching if Draghi resigns Thursday after his coalition partner said it would boycott a confidence vote the government called.