February 26th, 2013
06:21 AM ET

Italian election rattles world markets

World markets retreated Tuesday as a big vote for anti-austerity parties in Italy's elections left the eurozone's third biggest economy in political deadlock, sparking fears of a revival of the region's debt crisis.

European stock markets were sharply lower, led by a 4% plunge on Italy's index of leading shares. Italy's borrowing costs increased, as the yield on its 10-year bond moved up towards 5%, triggering similar moves in other weaker eurozone states such as Spain and Portugal. The euro fell to just above $1.30.

Final results showed the center-left coalition of Pier Luigi Bersani winning by a very slim margin in the lower house of parliament but unable to control the Senate after a strong showing by former Prime Minister Silvio Berlusconi and a protest movement led by comedian turned politician Beppe Grillo.

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Filed under: Economy • Italy • Politics
soundoff (2 Responses)
  1. tvnyc

    Thats a lie. The truth is US markets and world markets are all in bad shape. Thats all. Italy doesnt affect anybody lets make that clear.

    February 26, 2013 at 7:12 am | Report abuse |
  2. saywhat

    The anti austerity sentiment, protests and indications in countries like Italy & Spain are already factored in

    February 26, 2013 at 12:03 pm | Report abuse |