Global stocks rise as bond yields fall on apparent end to Italy’s political woes
London — World stocks rose and bond yields fell on Friday as investors welcomed an apparent end to a political crisis in Italy, although prospects of a full-blown trade war put a damper on gains. The MSCI All-Country World index, which tracks shares in 47 countries, rose 0.2%. It was set for a third week of losses, however, dented earlier in the week by risks of a snap election in Italy. Late on Thursday, leaders of Italy’s anti-establishment parties revived coalition plans, apparently ending three months of political turmoil. Italian stocks rallied 2.6%, the standout performers in Europe. The political crisis knocked more than 9% off the Italian benchmark in May, its worst months since June 2016. The pan-European STOXX 600 rose 0.7%. Borrowing costs in Italy also fell sharply. Italian two-year yields, which soared to five-year highs above 2.7% on Tuesday in a throwback to the euro debt crisis, retreated back to Monday’s levels. Events in Italy pushed peripheral eurozone bond yields...
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