Italian Markets Pummeled After Draghi’s Government Rocked
- Bond and stock futures fell after Premier offered to quit
- Euro languishing after dipping below parity with dollar
Mario Draghi
Photographer: Alessia Pierdomenico/BloombergThis article is for subscribers only.
Italian bond and stock futures plunged to fresh lows for the day and the euro dipped back below parity with the US dollar after Italy’s Prime Minister Mario Draghi said he would offer his resignation to the country’s president. That offer was subsequently rejected.
The euro was down as low as $0.9984 after Draghi’s offer was announced, but still above its lows from earlier in the session. September futures on 10-year Italian government debt plunged below 122, the lowest since June and below their 21-day moving average. Contracts on the benchmark equity index extended losses and fell by more than 5% on the day.