London — Italy’s political crisis and renewed trade war fears sent world stocks lower for the sixth consecutive day, although the hope that Italy could avoid a new election helped European markets stage a mini-bounce from one of their worst sell-offs in years. Investors have in recent days scurried for assets such as US and German bonds or the Japanese yen, spooked by the possibility that Italy, the third-biggest eurozone economy, could deliver a bigger boost to eurosceptic parties in a snap election that sources said could be held by end-July. An election at this point would also be a de facto referendum on Italy’s euro membership, evoking memories of the 2011-12 euro debt crisis and carrying huge implications for the single currency, whatever its outcome. However, reports that the two anti-establishment parties were again renewing efforts to form a government rather than force the country back to the polls, helped Milan-listed equities snap a five-day losing streak. Similarly, sho...
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