London — Italian stocks fell on Wednesday after reports that two parties seeking to form Italy’s next government could seek debt forgiveness, although broader markets were unfazed and focused instead on a pause in surging US bond yields. Rising US borrowing costs have rattled markets globally because of the concern they will hurt global demand, but with the dollar flat and treasury yields off their recent highs on Wednesday, most European stock markets opened higher. Asian markets had earlier dipped slightly after Pyongyang abruptly called off talks with Seoul, throwing a US-North Korean summit into doubt. The exception was Italy. Reports suggested the 5-Star and League parties, trying to form a government after inconclusive March 4 elections, had written a draft coalition deal asking for debt forgiveness from the European Central Bank (ECB), frightening investors in the eurozone’s third-largest economy. Italian stocks fell half a% while the pan-European Stoxx 600 rose 0.16%. Eurozo...
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