European stocks slump on Italy vote deadlock

European stock markets slumped and the euro hit a near two-month dollar low on Tuesday as dealers assessed the fallout of Italy's political impasse after elections in the indebted eurozone country.

Milan's FTSE MIB index tumbled 4.89 percent to end the day at 16,552 points, with deadlock in Italy's parliament after a critical vote in which the real winner was a protest party calling for a referendum on the euro.

London's FTSE 100 index of leading companies fell 1.34 percent to 6,270.44 points, Frankfurt's DAX 30 shed 2.27 percent to 7,597.11 points, in Paris the CAC 40 shed 2.67 percent to 3,621.92 points, as shares in European banks tumbled.

Madrid's IBEX 35 index dived 3.2 percent to 7,980.7 points on fresh fears of eurozone instability, traders said.

"Share markets and bank stocks in Europe are sliding as investor sentiment is rattled by the political impasse in the Italian elections," said Ishaq Siddiqi, market strategist at ETX Capital trading group.

In foreign exchange deals, the euro hit an intra-day trough of $1.3018 -- the lowest point since January 7 -- before recovering to $1.3059. That compared to $1.3065 late on Monday.

The price of gold, often seen as a haven in times of economic unrest, grew to $1,590.50 an ounce from $1,586.25 late on Monday in New York.

"Political uncertainty has increased in Italy following the election results, weighing upon the euro and risk assets," said Lee Hardman, currency analyst at the Bank of Tokyo-Mitsubishi UFJ in London.

"The election results send a strong signal for change from the electorate who have voted against the traditional political establishment, and the fiscal austerity programme endorsed by Europe.

"A period of prolonged political uncertainty in Italy poses downside risks for the euro in the near-term although unstable politics in Italy is not exactly a new phenomenon which with time the market may become more comfortable with as the ECB is still standing behind the debt market," Hardman added.

Elsewhere on Tuesday, Italy's borrowing rates jumped in a short-term bond auction.

The rate for the sale of six-month paper that raised 8.75 billion euros ($11.46 billion) shot up to 1.237 percent compared to 0.731 percent for the last similar auction in January.

On the secondary market the yield on benchmark Italian government 10-year bonds jumped to 4.897 percent -- the highest rate in three months -- from 4.490 percent on Monday as investors demanded better returns to risk holding Italian debt.

Ben May at London-based Capital Economics said "we think political uncertainty is likely to prompt them to continue to climb higher and that it may eventually force Italy to request a support package from the eurozone."

The yield on 10-year Spanish government bonds also rose sharply, to 5.365 percent from 5.168 percent on Monday, after having shot up as high as 5.6 percent at one point during the trading session.

-- 'We are likely to see increased volatility in the weeks ahead' --

Italy was at an impasse Tuesday after an election seen as crucial for the eurozone failed to produce a clear winner and provided a shock debut for a populist anti-austerity party.

Centre-left Democratic Party leader Pier Luigi Bersani scraped a razor-thin victory in the lower house of parliament but there was no winner in the Senate in the eurozone's third biggest economy.

A majority in both chambers of parliament is required to form a government, leaving Italy in a state of limbo with a hung parliament that is unprecedented in its post-war history.

"With the Italian elections delivering the worst possible outcome for investors, equity markets have reacted swiftly and severely -- giving up yesterday's gains and more," Rebecca O'Keeffe, head of investment at Interactive Investor, said in a note to clients.

"The risks in Europe remain significant and we are likely to see increased volatility in the weeks ahead," she added.

Financial stocks pushed indices lower, with Italy's biggest bank Unicredit tumbling 8.46 percent to 3.83 euros, France's Societe Generale losing 5.45 percent to 28.2 euros, Deutsche Bank shedding 4.88 percent to 34.42 euros and Barclays in non-eurozone member Britain giving up 4.7 percent to 297 pence.

In Asia equities fell with dealers there also spooked by the deadlocked Italian vote.

Tokyo tumbled 2.26 percent, with profit-takers moving in after the index enjoyed a big surge on Monday.

Sydney shed 1.03 percent, Seoul lost 0.47 percent, Shanghai tumbled 1.40 percent, while Hong Kong fell 1.32 percent.

US stocks, which had tumbled on Monday over Italian election concerns, generally moved higher Tuesday as Federal Reserve Chairman Ben Bernanke reaffirmed the need for continued economic stimulus in testimony to Congress.

The Dow Jones Industrial Average was up 0.55 percent to 13,860.05 points in midday trading.

The broad-based S&P 500 added 0.13 percent to 1,489.77, while the tech-rich Nasdaq Composite Index slid 0.16 percent to 3,111.16 points.

burs-rl/jmm

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
  • Ex-Comverse CEO pleads guilty to fraud, a decade after fleeing U.S.
    Ex-Comverse CEO pleads guilty to fraud, a decade after fleeing U.S. Reuters - 6 minutes ago

    The former chief executive officer of Comverse Technology Inc pleaded guilty on Wednesday to securities fraud, a decade after he fled to Namibia from the United States to avoid prosecution. Jacob "Kobi" Alexander, the Woodbury, New York-based … More »

  • U.S. crude down 3 percent after big stockpile build
    U.S. crude down 3 percent after big stockpile build Reuters - 28 minutes ago

    The U.S. Energy Information Administration (EIA) said crude inventories rose 2.5 million barrels last week, versus analysts' forecasts for a draw of 500,000 barrels. U.S. West Texas Intermediate (WTI) futures settled down $1.33, or 2.8 percent, at … More »

  • European stocks rebound as euro slips; oil tumbles
    European stocks rebound as euro slips; oil tumbles Reuters - 36 minutes ago

    European stocks scored consecutive daily gains for the first time in three weeks on Wednesday, drawing support from a weak euro, but U.S. and Canadian stocks drifted down as lower metal and oil prices weighed on the materials sector. Emerging … More »

  • EU, Portugal agree on 5 billion euro recapitalisation for ailing bank CGD
    EU, Portugal agree on 5 billion euro recapitalisation for ailing bank CGD Reuters - 40 minutes ago

    LISBON/BRUSSELS (Reuters) - The European Commission and Portugal have agreed in principle on the recapitalisation, on market terms, of ailing state-owned bank CGD, envisaging an injection of up to 2.7 billion euros (£2.3 billion) in state funds and … More »

  • Ecuador, Iran officials meet on need to stabilise oil prices Reuters - 1 hour 3 minutes ago

    QUITO (Reuters) - Ecuador's Foreign Minister Guillaume Long said on Wednesday that the South American country's authorities spoke with a visiting Iranian delegation about the need to stabilise oil prices. ... … More »

  • Syria rebels backed by Turkey tanks 'seize' IS-held town
    Syria rebels backed by Turkey tanks 'seize' IS-held town AFP News - 1 hour 4 minutes ago

    Turkish tanks and hundreds of opposition fighters thrust deep inside Syrian territory Wednesday in a lightning operation that within hours ousted Islamic State jihadists from a key Syrian border town. The air and ground offensive -- the most … More »

  • Wall St. declines as healthcare, materials lag
    Wall St. declines as healthcare, materials lag Reuters - 1 hour 5 minutes ago

    Wall Street retreated on Wednesday, pulled lower by declines in the materials and healthcare sectors as investors continued to assess the possibility of an interest rate hike in the coming months. The market is awaiting Federal Reserve Chair Janet … More »

  • The Latest: 8-year-old pulled out alive from quake rubble
    The Latest: 8-year-old pulled out alive from quake rubble Associated Press - 1 hour 7 minutes ago

    The Latest on the earthquake in central Italy (all times local): 8:35 p.m. An 8-year-old girl has been pulled alive from the rubble in Pescara del Tronto, one of the three towns most severely demolished ... … More »

  • Stocks edge lower as mining and materials companies slip
    Stocks edge lower as mining and materials companies slip Associated Press - 1 hour 23 minutes ago

    U.S. stocks are edging lower in afternoon trading on Wednesday, giving back a modest increase from the day before. The declines, which were led by mining and materials companies, were light but broad as ... … More »

  • Copper Drops to Erase Year’s Gains on LME as China Imports Slide Bloomberg - 1 hour 50 minutes ago

    Glencore Plc, the top copper supplier, fell after reporting profit declined by two-thirds. Copper for delivery in three months declined 1.7 percent to settle at $4,632 a metric ton ($2.10 a pound) at 5:50 p.m. on the LME, capping the longest … More »

  • Russia jails leader of banned nationalist group
    Russia jails leader of banned nationalist group AFP News - 2 hours 33 minutes ago

    A Russian court on Wednesday sentenced ultranationalist politician Alexander Belov, a former leader of a banned anti-immigration movement, to seven and a half years in prison for extremism and money laundering. Belov was formerly coordinator of the … More »

  • Euro area banks see net profit fall 20 percent in first quarter - ECB
    Euro area banks see net profit fall 20 percent in first quarter - ECB Reuters - 2 hours 44 minutes ago

    Euro area banks saw their profits fall by a fifth in the first three months of this year as they made less money from trading and most other business areas, European Central Bank data showed on Wednesday. The ECB survey painted a gloomy picture, … More »

  • European equities mainly rise on German GDP
    European equities mainly rise on German GDP AFP News - 2 hours 54 minutes ago

    European stock markets made limited gains Wednesday after a downbeat session in Asia, with sentiment partly lifted by German economic growth data. Strong foreign trade and buoyant consumption drove Germany's economy, Europe's largest, to … More »

  • Oil slides on surprise jump in US crude stockpiles AFP - 3 hours ago

    Oil prices slumped Wednesday as a surprise jump in US crude stockpiles added to lingering concerns over a global supply glut. The US Department of Energy said commercial inventories of US crude grew by ... … More »

  • Global Markets - European stocks rebound as euro slips; oil tumbles
    Global Markets - European stocks rebound as euro slips; oil tumbles Reuters - 3 hours ago

    European stocks scored consecutive daily gains for the first time in three weeks on Wednesday, drawing support from a weak euro, but U.S. and Canadian stocks drifted down as lower metal and oil prices weighed on the materials sector. On a light day … More »

  • FTSE underperforms European peers, miners hinder
    FTSE underperforms European peers, miners hinder Reuters - 3 hours ago

    Britain's blue-chip share index retreated on Wednesday, underperforming its European peers, as a sharp drop in metals prices put pressure on the mining sector and South Africa-exposed stocks fell as the rand slipped. Glencore GLEN.L was down 3.1 … More »

  • Up 57 percent, Britain's inflation-linked gilt tops all bonds in 2016 Reuters - 3 hours ago

    The longest-dated UK government index-linked gilt has been the best performing government bond of 2016 as investors scramble to buy inflation protection in the wake of Britain's shock decision to leave the European Union. The UK government's 0.125 … More »

  • Sensors, other devices can help prevent hot car deaths
    Sensors, other devices can help prevent hot car deaths Associated Press - 3 hours ago

    Hot cars are a danger to children, particularly in a sweltering summer like this one. There are some devices on the market — built into cars as well as child seats — that can help prevent kids from being ... … More »

  • Markets Right Now: US stocks edge lower at midday Associated Press - 3 hours ago

    The latest on developments in global financial markets (all times local): 11:45 a.m. Stocks are moving slightly lower in midday trading on Wall Street as the market gives back a modest gain from the day ... … More »

  • China’s Shadow Finance Is Reminiscent of Pre-Crisis U.S.: Q&A Bloomberg - 3 hours ago

    The nation has at most about 18 months before this funding -- derived largely from wealth-management products offering higher returns on riskier underlying investments -- hits a wall, says Wright, director of China markets strategy for New … More »

  • New PBOC Money-Market Tactic Has Traders Trying to Decode Signal Bloomberg - 3 hours ago

    The People’s Bank of China sold 50 billion yuan ($7.5 billion) of 14-day reverse-repurchase agreements on Wednesday, its first offering of anything with a tenor other than seven days since February. Officials are signaling they’re ready to curb … More »

  • Italy quake unlikely to trigger 200 mln euro cat-bond default
    Italy quake unlikely to trigger 200 mln euro cat-bond default Reuters - 3 hours ago

    A powerful earthquake in Italy on Wednesday is unlikely to force UnipolSai's 200 million euro ($226 mln) catastrophe bond into default as the bond has low exposure to the affected region, the Italian insurer said. The earthquake devastated a string … More »

  • Glencore’s Worst Profit Shows Miners Still Reeling From Rout (1) Bloomberg - 3 hours ago

    Weak raw-material prices caused profit at the commodities giant to plunge 66 percent in the first half to $300 million. The shares dropped 3.1 percent in London even as Glencore promised to cut debt even further and said it may resume paying … More »

  • TABLE-INDONESIA KPB NUSANTARA PALM OIL PRICES - Aug 24 Reuters - 3 hours ago

    Aug 23 (Reuters) - Following are Indonesian prices for crude palm oil (CPO) quoted at an auction by PT KPB Nusantara (formerly known as the state marketing centre) on Monday. Buyer Volume Price Terms (tonnes) ... … More »

  • RUBBER-Tokyo futures prices after evening session Aug 24 Reuters - 4 hours ago

    Following are prices for Tokyo rubber futures at the end of the Tokyo market's evening session on Aug 2016. Contract Day Volume Evening Volume * Aug 162.5 26 157.6 4 * Sep 160.2 33 158.5 1 * Oct 160.0 ... … More »

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.1290.0000.00%
    N21.SI
    0.250.00-1.96%
    5ME.SI
    0.60+0.04+6.57%
    5TP.SI
    0.99-0.02-1.98%
    Y92.SI
    0.156+0.007+4.70%
    AFC.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.30+0.06+22.45%
    T18.SI
    0.15+0.02+15.38%
    5TI.SI
    0.225+0.025+12.50%
    Y35.SI
    0.51+0.05+12.09%
    BHU.SI
    0.162+0.017+11.72%
    QS9.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.011-0.115-91.27%
    QF6.SI
    0.23-0.17-42.50%
    AWI.SI
    0.205-0.055-21.15%
    I06.SI
    0.45-0.10-18.18%
    BFK.SI
    0.385-0.085-18.09%
    E8Z.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3546+0.0033+0.24%
    USDSGD=X
    1.5261-0.0009-0.06%
    EURSGD=X
    1.7921+0.0094+0.53%
    GBPSGD=X
    74.1040-0.005-0.01%
    SGDJPY=X
    5.7213-0.0142-0.25%
    SGDHKD=X
    2.9751-0.0007-0.02%
    SGDMYR=X
    9,777.2441-39.46-0.40%
    SGDIDR=X
    4.9103-0.0031-0.06%
    SGDCNY=X
    1.0307+0.0018+0.17%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,329.00-17.10-1.27%
    GCZ16.CMX
    18.54-0.38-2.02%
    SIU16.CMX
    95.60-8.29-7.98%
    ^XAU
    2.08-0.04-1.70%
    HGU16.CMX
    46.70-1.40-2.91%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.140.00
    ^FVX
    1.56+0.01
    ^TNX
    2.24+0.01
    ^TYX