London — Italian stocks slid on Wednesday after reports that the two parties seeking to form Italy’s next government might seek debt forgiveness, while the dollar ignored a pull-back in US bond yields and rallied to a new 2018 high. Asian markets had earlier dipped after Pyongyang abruptly called off talks with Seoul, throwing a US-North Korean summit into doubt, but this failed to rattle European stocks. Markets were also unfazed by Italian politics with the bigger focus being a rocketing dollar and rising US borrowing costs, which have spooked investors in recent weeks and intensified concern about damage to global demand, squeezing emerging markets. The dollar resumed its rally in European trading and reached a high for the year. This gain left the euro below $1.18, its lowest since December 19. However, with 10-year US treasury yields slipping back below seven-year highs reached earlier this week, most European stock markets traded close to flat. The exception was Italy. Reports...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.