London — European shares inched to a near four-month high on Tuesday, as an easing of pressure on Italian markets coincided with China’s latest move to open up its giant economy to the rest of the world. A pause in the dollar’s recent rally also meant some respite for emerging markets, tempting some investors back into hard-hit assets of countries like Turkey and SA. Early European trading saw Italian government bond yields come off 14-month highs, after six days of heavy selling on concerns over high-spending policies mooted by a potential new ruling coalition. The proposed tie-up of the anti-establishment 5-Star Movement and the far-right League has pushed Rome’s 10-year yields up nearly 70 basis points since the start of May. And plenty of questions remain. "Who will be the next finance minister in Italy, that is the question in the market at the moment," said Rabobank’s head of macro strategy Elwin de Groot. One of the names in the frame is Paolo Savona, an 81-year-old economist...
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