Global Markets in Turmoil as Italy Fails to Form New Government

Global Markets in Turmoil as Italy Fails to Form New Government

Global Markets in Turmoil as Italy Fails to Form New Government

Stocks across Europe took a hit, with Italy's benchmark stock index falling 2.7 percent, the German DAX falling 1.5 percent, with both Britain's FTSE 100 and the French CAC 40 falling 1.3 percent.

TREASURIES: U.S. government bond prices jumped as investors moved money into lower-risk assets.

The Dow Jones Industrial Average fell 391.64 points, or 1.58 percent, to 24,361.45, the S&P 500 lost 31.47 points, or 1.16 percent, to 2,689.86 and the Nasdaq Composite dropped 37.26 points, or 0.5 percent, to 7,396.59.

"The Italian turmoil is reminiscent of the Greek debt issue (in 2011/12) that remains fresh in investors' memory, though in its current form, the concern likely remains on the threat to the (European) single currency", said IG Market's Pan Jingyi. Mattarella has tasked former economist Carlo Cottarelli with forming a caretaker government, but it is unlikely to win necessary approval from the Italian parliament.

Volume on USA exchanges was 7.58 billion shares, compared to the 6.58 billion average over the last 20 trading days.

New worries about the euro sent the currency to its lowest level against the dollar in almost a year. The pan-European FTSEurofirst 300 index .FTEU3 lost 1.3 percent. -North Korean summit and the U.S.

The reports indicate that planning for the summit, initially scheduled for June 12, is moving ahead even though U.S. President Donald Trump called it off last week.

Asia flinched. Japan's Nikkei .N225 slipped 0.6 percent. Signs of escalating trade tensions between the USA and China further fanned the fear factor in financial markets. Spot gold XAU= added 0.2 percent to $1,299.85 an ounce.

Traders work on the floor of the New York Stock Exchange (NYSE) on May 29, 2018 in New York City.

The greenback is poised to turn in its best monthly performance against a basket of trading partners' currencies.DXY since 2015.

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.

US crude futures stood at $66.45 per barrel (CLc1) after falling for five sessions.

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