Italian stocks turned sharply lower on Monday, acting as a deadweight on other European markets as investors looked at the increasing possibility of new elections for Italy, while political uncertainty also swirled around Spain.
But investors may see thinner volumes than normal as London markets closed for a bank holiday and U.S. markets will shut in observance of Memorial Day.
What are markets doing?
In a turbulent session, Italy’s FTSE MIB index I945, -2.13% shed initial opening gains to drop 2.5% to 21,851.74. The index has been on a roller-coaster ride in recent sessions as two antiestablishment parties — 5 Star Movement and League — that recently decided to form a coalition after March elections have been attempting to form a government. The index tumbled 4.5% last week.
Following suit, Germany’s DAX 30 index DAX, -0.48% fell 0.7% to 12,848.62, while France’s CAC 40 PX1, -0.62% shed 0.8% to 5,500.93. Portugal’s PSI 20 Index PSI20, -1.62% slid 1.7% to 5,513.76.
What is driving markets?
On Monday, Italian President Sergio Mattarella asked former International Monetary Fund official Carlo Cottarelli to try to form a new government. Paolo Savona, an 81-year-old economist and former industry minister who had been up for the post...