AM Report 30 May 18: Italian government stability concerns rattles markets

European sharemarkets fell on Tuesday. The key issue was the collapse of the Italian government and the likelihood of fresh elections. The concern is that the 5 Star movement and League parties may gain a parliamentary majority in new elections and extend the push for Italy to leave the euro zone. The broad STOXX600 index fell by 1.4%, the Italian market fell by 2.7%, German Dax was lower by 1.5% and the UK FTSE fell by 1.3%. US sharemarkets fell on Tuesday. Banks fell the most with Morgan Stanley down 5.8%. Energy stocks continue to ease in response to lower oil prices. After being down 505 points, the Dow Jones finished lower by 392 points or 1.6%.

 

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