Italy Market Pain Builds as Political Turmoil Swirls, ECB Looms
- Talks on the survival of Draghi’s government thrown into chaos
- Draghi exit would complicate launch of ECB’s bond-crisis tool
Mario Draghi
Photographer: Alessia Pierdomenico/BloombergThis article is for subscribers only.
Italian bonds and stocks stand on the cusp of even bigger losses as the nation’s political crisis deepened late Wednesday, with Prime Minister Mario Draghi’s government appearing once again to be on the brink of collapsing.
Futures on the nation’s stock market slid to new lows for the day as news filtered through about the government’s perilous state, suggesting more equity losses to come unless a solution is found. Bond market futures, which ended Wednesday around their lows for the day before the latest twists of the political saga were known, also have room to fall, while the euro is near its lowest levels for the day.