Italy is already paying a high price for its political crisis

Asian markets track European losses, strong yen hits Nikkei | Charlotte Observer

"A spot forecast assumes things are bad for the summer and into the autumn but that Italy doesn't ditch the euro or adopt policies that doom it to leaving before too long", said Societe Generale strategist Kit Juckes.

Italy's populist 5-Star Movement and the anti-immigration League have criticized European Union restrictions on annual government borrowing and on the overall size of a country's debt pile. While the prospect of snap Italian elections - which could effectively become a referendum on the euro - continues to loom, some investors see the selloff as overdone while the timing of any vote remains unclear.

While concerns about the European politics ease, fears of a trade war between major economies are back on investors' minds after the United States moved ahead with tariffs on aluminium and steel imports from Canada, Mexico and the European Union, ending the two-month exemption it had given earlier.

He also warned that Italy "must never forget the very serious risk of losing the irreplaceable asset of trust". The parties will likely keep negotiating, and contentious talks between the US and China are due to resume during the weekend.

Most analysts believe Italy will remain a member of the eurozone.

CURRENCIES: The dollar rose to 109.53 yen from 108.83 yen.

A Reuters poll conducted before the release of the regional data suggested that Germany's harmonised consumer price inflation (HICP) rate would rise to 1.8 percent in May.

The 10-year Treasury yield was at 2.871 per cent after brushing a 1-1/2-month low of 2.759 per cent on Tuesday.

Landslide kills 2 in North Carolina
Forecasters say what's left of the first named storm of the Atlantic hurricane season is still capable of causing flash flooding. Cooper's office has said that water rescue teams from across the state are coming to the area to help if needed.

The euro dived in opposition to the greenback and yen Tuesday to lows not seen since mid-2017 and it prolonged the losses in Asian commerce. The Russell 2000 index fell far less than the Dow average, giving up 3.28 points, or 0.2 percent, to 1,623.65.

Elsewhere Spanish equities rose 1.4 percent, shrugging off any jitters as a no confidence motion in Prime Minister Mariano Rajoy was set to be voted.

Efforts to form a government collapsed Sunday after President Sergio Mattarella rejected a nominee for economy minister, Paolo Savona, who in the past had entertained a "Plan B" to leave the euro.

The yield on the benchmark 10-year Treasury note was lower at around 2.826 percent, while the yield on the 30-year Treasury bond ticked down to 2.991 percent.

While To-year Italian bond yields have soared to 3 over percent recent days, they are well below levels they hit at the height of Europe's debt crisis.

ENERGY: U.S. crude oil fell 27 cents to $66.46 per barrel in electronic trading on the New York Mercantile Exchange.

That puts inflation right at the European Central Bank's target of close to, but just below 2.0 percent. Natural gas dropped 2.2 percent to $2.88 per 1,000 cubic feet. Brent crude, used to price global oils, dropped 40 cents to $77.16 per barrel. Italy's rate reached 1.1% compared to 0.6% in April.

On Wednesday Japan's Nikkei 225 stock index dropped 1.5%, South Korea's Kospi dropped 1.8% and the Hang Seng in Hong Kong slipped 1.2%.

Related News:

  • Kim Jong-un cries on camera over state of North Korean economy

    Kim Jong-un cries on camera over state of North Korean economy

    Trump told reporters he hadn't read the letter yet and added with a smile, "I may be in for a big surprise, folks". Despite recently envisioning Nobel laurels, Trump worked on Friday to lower expectations for a quick breakthrough.
    Kremlin calls staging of Russian journalist's death in Kiev odd

    Kremlin calls staging of Russian journalist's death in Kiev odd

    Once inside the morgue, Babchenko said he was "resurrected", taking off the blood-stained clothes. The Kremlin has always vehemently denied allegations regarding the deaths of journalists.
    EPL: Chelsea give reason they'll no longer build 60,000 capacity stadium

    EPL: Chelsea give reason they'll no longer build 60,000 capacity stadium

    He acquired Chelsea FC in 2003, and has had many milestones of success since, including a 2012 victory in the Champions League. The club was looking to build the new stadium on the current Stamford Bridge site, and planned to moved in by 2021.
  • Dow sheds more than 400 pts as Italy's political crisis deepens

    Dow sheds more than 400 pts as Italy's political crisis deepens

    The events have evoked memories of the 2011-2012 euro debt crisis, with potentially huge implications for the single currency. In Asia, shares made moderate gains early on Thursday as global markets rebounded after recent fears about Italy faded.
    Celtics humble Cavaliers in NBA playoff series opener

    Celtics humble Cavaliers in NBA playoff series opener

    Celtics head coach Brad Stevens emphasized that Kevin Love and Kyle Korver shouldn't have easy looks and they didn't in Game 1. For anyone who thought there would be another remarkable performance by LeBron James , they were ended up being disappointed.
    Nipah; one more die in Kerala, death toll climbs to 14

    Nipah; one more die in Kerala, death toll climbs to 14

    The Nipah virus, which is spread by fruit bats , can cause a communicable disease that can be fatal for both animals and humans. - Nipah virus can be transmitted to humans from animals (bats, pigs), and also be transmitted directly from human to human.
  • Michael Cohen’s lawyers have until mid-June to review documents, judge says

    Michael Cohen’s lawyers have until mid-June to review documents, judge says

    After leaving the hearing, Avenatti offered an energetic condemnation of Cohen to the press assembled outside the courthouse. Ryan also said Avenatti had improperly acquired and released certain bank records related to Cohen's business dealings.
    Kylie Minogue celebrates turning 50 with old Neighbours pals

    Kylie Minogue celebrates turning 50 with old Neighbours pals

    Minogue landed two Billboard Hot 100 top 10 hits including her 1988 "Loco-Motion" and 2001's " Can't Get You Out of My Head ". The singer's new relationship comes one year after her split with British actor Joshua Sasse.
    Who will replace Zinedine Zidane as Real Madrid manager?

    Who will replace Zinedine Zidane as Real Madrid manager?

    The latter, according to the Daily Mail , is set to offer a new deal to Gareth Bale to thwart interest from Manchester United . After three years, it's the right decision.
  • Golden State's Iguodala to miss Game 5 against Rockets

    Golden State's Iguodala to miss Game 5 against Rockets

    The Rockets will take a 3-2 series lead back to Oakland, Calif., with a chance to close out the defending champions on Saturday. By then, Kerr said he was resigned to the fact that the referees wouldn't stop the play to award the Warriors a timeout.
    Stocks rebound as Italian risk fades slightly

    Stocks rebound as Italian risk fades slightly

    Two-year bond yields fell below 1% in intraday trading, and Italian bank stocks have recovered some of their recent losses. The center-right coalition, including Lega, got 37 percent, while the Democratic Party won about 20 percent of the vote.
    Top North Korean official headed for NY

    Top North Korean official headed for NY

    A "pre-advance" team of U.S. officials was also travelling to Singapore to meet with North Koreans there, the White House said. Observers believe that recent Trump's announcement of withdrawing from Iran nuclear deal has caused a huge dent on U.S. image.


Most liked

West Indies thump World XI in Hurricane Relief T20
From 4-8 in just the fourth over there was no way back for the World XI , despite Thisara Perera's impressive half-century. West Indies defeated ICC World XI by 72 runs in the Hurricane Relief T20 fund-raiser at Lord's on Friday.

Trump tweets he wishes he didn't pick Sessions as AG
Trump has also denounced Mueller's investigation as a "witch hunt", and attacked the investigation in an effort to undermine it. Trump has publicly criticized the attorney general over his recusal, calling it a "terrible mistake for the country" in April.

President renews tariff threat, complicating upcoming talks
In response, the Chinese Ministry of Commerce said it was "surprised" by the move but at the same time "somewhat expected" it. The White House announcement may be only the latest dizzying turn in Trump's carrot-and-stick approach to trade negotiations.

Deutsche Bank on United States 'troubled' list
Deutsche Bank's new CEO has moved to reassure staff that the bank is in good shape after a tough 24 hours for the troubled German lender.

Lions, tigers, jaguar and bear escape zoo in Germany
Local residents near the zoo close to the Luxembourg border were warned to stay indoors while the predators were on the loose. This June 2016 image shows lion Malor (behind) and the mother Lira in their enclosure in the Eifel Zoo, eastern Germany.

Roseanne Barr hints she may challenge cancellation of hit show
Robert Iger, chairman of ABC owner Disney, said in a tweet , "There was only one thing to do here, and that was the right thing". I don't know the financials of Caputo's company, but it would have to view " Roseanne " as a lost-leader.

Australia exempted from U.S. tariffs on steel and aluminium
European Union leaders have responded angrily. "But we see no sign of that in this action today by the USA administration". Huge tariffs on imported steel and aluminium from Europe, Canada and Mexico have come into effect in the United States.

Spanish PM Rajoy is booted out of office
Sanchez told reporters Friday that he was "aware of the responsibility and the complex political moment of our country". In Berlin, a government spokesman said Germany hoped for a stable government in Madrid.

Pompeii: New find shows man crushed trying to flee eruption
The stone is believed to have been a door jamb that had been "violently thrown by the volcanic cloud", officials said. In the 1800s and 1900s, they dug in the area where we found the skeleton, but they did not go as deep as we did.

School shooting video game removed online after backlash from Parkland parents
Set in a school building, Active Shooter demands you to terrorise kids, cops and civilians by attempting to kill them. In a statement , Valve accused the video game maker of being a troll who has been kicked off the Steam site before.

China warn of trade war if USA 'flip-flops'
The statement came more than a week after Treasury Secretary Steven Mnuchin said that the trade war was being put "on hold ". Trump is also under pressure from Congress to stay tough on China, especially Chinese telecoms-equipment maker ZTE Corp.

How Enterprises Can Make GDPR a Global Data Privacy Standard
This was followed by Accountability (41.2%), Consent (39.7%), Data Portability (39.7), and Right to Erasure (35.3%). For example, music streaming services like Spotify create playlists for users based on their music preferences.

Leaked image indicates Assassin's Creed: Odyssey will be set in ancient Greece
Ubisoft then later tweeted out a short, short teaser confirming the title, and asking fans to wait for more from E3. The leak seems to have also been confirmed by Kotaku , which also received a similar picture from an insider.

Trump Says He’s Considering Pardon for Martha Stewart, Commuting Rod Blagojevich’s Sentence
Despite the backlash, D'Souza is scheduled to speak at a two-day event next month sponsored by the Republican Party of Florida. Rod Blagojevich's brother, Robert Blagojevich, told WBEZ that he also agrees that the former governor deserves to be released.

Third quarter can be pivotal for Cavaliers in NBA Finals
George Hill was fouled and made 1-of-2 free throws with 4.7 seconds remaining but missed the second and the game went to overtime. Golden State's Kevin Durant (right) and Cleveland's LeBron James take charge in the thrilling NBA Finals opener.