Sun, 3 August
34.1 C
Yerevan
USD: 383.84 RUB: 4.70 EUR: 442.91 GEL: 141.90 GBP: 512.96

US stock markets drop as Italy election reignites fears of Europe debt crisis, guardian reports

YEREVAN, February 26. /ARKA/. US stocks had their worst drop in more than three months as the prospect of political paralysis in Italy raised the specter of Europe’s debt crisis flaring up again, Guardian.co.uk reported.

The Dow Jones industrial average fell 216.40 points, or 1.6%, to 13,784.17, its biggest drop since 7 November.

The Standard & Poor’s 500 index fell 27.75 points, or 1.8%, to 1,487.85, dropping below 1,500 for the first time in three weeks. The Nasdaq composite dropped 45.57 points, or 1.4%, to 3,116.25.
Stocks had rallied in the early going as exit polls showed that a center-left coalition in Italy that favored economic reforms in the euro region’s third-largest economy was leading. That gain evaporated after a later poll predicted that the elections could result in a stalemate in the country’s legislature. The losses accelerated in the late afternoon as partial official results showed an upstart protest campaign led by a comedian making stunning inroads.

“There was confidence in this election and obviously confidence imploded,” said Ben Schwartz, a market strategist at Lightspeed Financial.

Investors dumped Italian government bonds, sending their yields higher, and erased most of an early rally in Italy’s stock market. The yield on Italy’s 10-year government bond shot up to 4.43% from 4.12% early in the day, a sign that investors’ confidence in Italy’s government was dimming quickly. The country’s benchmark stock index, the FSTE MIB, rose 0.7%, giving up an early gain of 4%.
Investors worry about the outcome of Italy’s election because it could set off another crisis of confidence in the region’s shared currency, the euro.

Financial markets in both Europe and the US are worried about the prospect of Italy or Spain being dragged into the region’s government debt troubles, which have led to bailouts of Greece, Ireland and Portugal and severe disruptions in financial markets. –0–

spot_img

POPULAR

Insurance market of Armenia is in embryonic state

Insurance market of Armenia is in embryonic state

Ranking of most profitable banks in Armenia based on results of first quarter of 2025

ARKA news agency publishes the ranking of the most profitable commercial banks in Armenia based on the results of the first quarter of 2025.

Moody’s upgrades Converse Bank’s ratings

Moody's Ratings has upgraded Converse Bank CJSC's long-term local and foreign currency bank deposit ratings to Ba3 from B1, aligning the Bank’s rating with Armenia’s sovereign rating.

Ranking of Armenia’s most profitable banks in 2024

ARKA news agency has released a ranking of the most profitable commercial banks in Armenia in 2024.

LATEST NEWS

spot_imgspot_imgspot_img