Dollar vulnerable as Italy crisis cools, European Union inflation picks up

Asian markets track European losses, strong yen hits Nikkei | Charlotte Observer

Asian markets track European losses, strong yen hits Nikkei | Charlotte Observer

Political worries also battered Italy's government bonds, putting renewed pressure on the euro.

Milan's stock index opened slightly higher Wednesday after Asian markets slid on investor concern that a new election could become a referendum on whether Italy will stick with the euro currency.

Short-dated Italian bond yields - one of the most sensitive gauges of political risk - soared as much as 80 basis points to their highest since late 2013 as investors' anxiety deepened. The euro sank to $1.1577 from $1.1669. Google's parent company Alphabet lost 1.5 percent to $1,068.21 and Mastercard fell 2.3 percent to $186.80.

Shares in Italian banks Banco BPM (BAMI.MI), BPER (EMII.MI), UBI (UBI.MI) and Intesa Sanpaolo (ISP.MI) were among the biggest risers on the STOXX, up between 3.3 percent to 8.5 percent after sustaining heavy losses in the previous month.

Technology companies, which get more of their revenue from outside the USA than any other part of the S&P 500, also fell.

The Treasury official said it was unclear who would be representing Italy at the G7 finance ministers and central bank governors' meeting on Thursday, Friday and Saturday in Whistler, Canada. "I see a lot of uncertainty, which results in a lot of volatility".

Juncker said at a conference Thursday that "Italians have to take care of the poor regions of Italy".

Pedro Sanchez was nearly certain to become Spain's new leader after his Socialist party secured enough votes to force Mariano Rajoy from office in a no-confidence vote on Friday that will throw the political spotlight onto a second southern European state. They bought government bonds in the U.S.as well as Germany and the U.K. That sent prices for those bonds higher and yields lower. Madrid's IBEX bourse was down nearly 2 per cent.

Japan's Nikkei 225 stock index dropped 1.5 percent to 22,018.52.

E-Mini futures for the S&P500 also gave up early gains to be down 0.5 per cent.

The turmoil hit US bank shares and caused a sell-off of euro assets and a rush into safe-haven Treasury debt, sending the dollar to a 10-month high against the euro.

Against the greenback, the Canadian dollar strengthened as much as 1.4 percent on Wednesday after the country's central bank held interest rates steady but suggested that it could raise rates soon, possibly as early as July. "This should keep the risk trades pressured to the downside", Nick Twidale, Sydney-based analyst at Rakuten Securities Australia.

"Worries over geopolitics look set to hit Asia after sweeping through Europe and also the United States at the start of the week". Trump tweeted that a US team is in North Korea to make arrangements for the planned June 12 summit in Singapore, days after he said the USA was withdrawing from the meeting.

NORTH KOREA: Diplomacy accelerated Tuesday ahead of a potential summit between President Donald Trump and North Korean leader Kim Jong Un as a team of American diplomats involved in preparatory discussions left a Seoul hotel, possibly to continue talks with their North Korean counterparts. Yields move inversely to price.

The ECB could just hint at an extension to QE while taking another six weeks to see how the political situation in Italy and the trade conflict with the US play out, and take in more economic data, said the economist.

Recommended News

  • U.S. to slap tariffs on European Union steel and aluminium

    He said he planned to travel to China on Friday for trade talks between the world's two biggest economies. He also said the administration is eager to stay at the negotiating table with all three countries.
    Daniel Ricciardo champion in Monaco, Lance Stroll 17th

    Daniel Ricciardo champion in Monaco, Lance Stroll 17th

    Ricciardo had already smashed the all-time track record repeatedly in practice before qualifying in 1:10.810. Daniel Ricciardo has split the last four races with Lewis Hamilton , winning two each.
    Mega Man 11 Release Date Confirmed with New Trailer

    Mega Man 11 Release Date Confirmed with New Trailer

    Capcom's Japanese-language webpage for Mega Man 11 has also revealed a new Mega Man Amiibo that will launch alongside the game. While there are over 50 unique Mega Man-related titles out there, you can start with these gems and go from there.
  • Rockets remain optimistic after season-ending loss to Warriors

    Rockets remain optimistic after season-ending loss to Warriors

    But in minor move, I think the Houston Rockets should give Luc Mbah a Moute another go with this team. "His work ethic. Outside of James, these Cavs are drastically different than the team the Warriors played in last year's NBA Finals .
    Horgan promises to continue pipeline fight

    Horgan promises to continue pipeline fight

    That sentiment was similar to what Moe said Tuesday in response to the federal government buying the pipeline. Saskatchewan Premier Scott Moe said Horgan's administration has shown willingness only to stand in the way.
    Trump's Rebuke of Sessions' Recusal Probed by Mueller

    Trump's Rebuke of Sessions' Recusal Probed by Mueller

    Since day one of his presidency Trump has been obsessed with crowd size , and Tuesday's rally was no different. "I don't think they would have asked to interview him until they are pretty much finished with everything".
  • Mohamed Salah to travel to Spain for treatment on shoulder injury

    Mohamed Salah to travel to Spain for treatment on shoulder injury

    Egypt and Liverpool forward Mo Salah's prospects of playing in this summer's World Cup were given a fresh boost on Wednesday. Everyone is free to make a personal decision but I don't think anyone would want to leave after you touch the sky".
    Active Shooter gets deactivated on Steam

    Active Shooter gets deactivated on Steam

    Marketing is Robinette's livelihood, and she brought her skills from the office home to spread the word about " Active Shooter ". Almost 200,000 people have signed a petition on Change.org urging Valve to pull the video game and has since claimed victory.

    Cavs' LeBron James closes in on personal playoff scoring record

    By now, it's common knowledge LeBron James has made it to eight consecutive NBA Finals - with the Cleveland Cavaliers and Miami Heat.
  • Five best innings from previous World XI matches

    Five best innings from previous World XI matches

    Brathwaite reiterated the significance of the match, while also expressing the importance of the money to be raised. Kesrick Williams finished with 3-42 and Andre Russell claimed 2-24.
    LeBron Takes Cavaliers to NBA Finals Again

    LeBron Takes Cavaliers to NBA Finals Again

    James kept his team in the lead with his shooting and passing wizardry but faced a formidable adversary in 20-year-old Tatum. Rozier, meanwhile, went just 2-for-14, and failed to connect on any of his 10 three-point attempts.
    Tamil Nadu orders permanent closure of Sterlite Copper plant

    Tamil Nadu orders permanent closure of Sterlite Copper plant

    Back in 2013 locals said they suffered from nausea and throat infections from alleged gas leaks at the plant. A video of a police officer on top of a bus and pointing an assault rifle at crowds has fuelled fresh anger.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.