Austerity or growth?

Italian Tumult Spurs Global Selloff

from The Wall Street Journal,

Six years after the eurozone stepped back from the brink, a violent selloff in southern European debt is bleeding into broader markets.

The Dow Jones Industrial Average dropped nearly 400 points and U.S. Treasury yields posted their largest daily decline in nearly two years as investors around the globe retreated from risk following signs of political upheaval in Italy.

Worries about Italy and Spain gripped markets Tuesday, triggering declines in stocks, a drop in the euro and big moves in bond markets. Italian President Sergio Mattarella on Sunday blocked the formation of a euroskeptic coalition government, raising the prospect of new elections that could strengthen the hand of anti-eurozone forces.

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