Worsening Italian crisis batters financial markets
By Tomo Uetake TOKYO (Reuters) - Asian shares looked set for a sharp fall on Wednesday as Italy's political crisis provoked a sell-off on Wall Street, sent the euro to a 10-month low and spiked borrowing costs for the government in Rome. Japan's Nikkei futures traded in Chicago pointed to a 1.4 percent fall in the Nikkei .
By Tomo Uetake
TOKYO (Reuters) - Asian shares looked set for a sharp fall on Wednesday as Italy's political crisis provoked a sell-off on Wall Street, sent the euro to a 10-month low and spiked borrowing costs for the government in Rome.
Japan's Nikkei futures traded in Chicago
On Wall Street, the Dow Jones Industrial Average <.DJI> fell 1.58 percent to 24,361.45, the S&P 500 <.SPX> lost 1.16 percent to 2,689.86 and the Nasdaq Composite <.IXIC> dropped 0.5 percent to 7,396.59.
Investors fear that repeat elections - which now seem likely in the euro zone's third-largest economy as soon as July - may become a de-facto referendum on Italian membership of the currency bloc and the country's role in the European Union.
Short-dated Italian bond yields
Tradeweb Markets LLC reported average trading volume in the debt is up by more than 60 percent in May compared to the month prior.
Safe-haven U.S. Treasury bonds and German bunds rallied, as did the Japanese yen, the U.S. dollar and gold. The euro fell against the Swiss franc, Japanese yen and U.S. dollar, nearing $1.15
"It's not surprising that investors fled fragile emerging markets and southern Europe and sought safety in cash," said Yasuo Sakuma, chief investment officer at Libra Investments.
"I have been waiting for a 5 percent correction in Japanese and U.S. stocks for some time. But I probably wouldn't start buying on a full scale unless the Nikkei drops below the 21,000 level."
In Asia, the focus was also on the on-again, off-again U.S.-North Korean summit and the U.S.-China trade relationship.
An aide to North Korean leader Kim Jong Un arrived in Singapore on Monday, Japanese public broadcaster NHK reported, and the White House said a "pre-advance" team was traveling to the city to meet the North Koreans.
The reports indicate that planning for the summit, initially scheduled for June 12, is moving ahead.
The United States also said on Tuesday that it would continue pursuing actions on trade with China, days after Washington and Beijing announced a tentative solution to their dispute and suggested that tensions had cooled.
Emerging market stocks <.MSCIEF> lost 1.0 percent, marking a new low point for the year, under continued pressure from a rising U.S. dollar for countries that often borrow in that currency.
Oil struggled under pressure from expectations that Saudi Arabia and Russia would pump more oil to counter potential supply shortfalls from Venezuela and Iran, even as U.S. output has surged in recent years.
U.S. crude futures stood at $66.80 per barrel
(Reporting by Tomo Uetake; editing by Richard Pullin)
This story has not been edited by Firstpost staff and is generated by auto-feed.
Both were trying to free their motorcycle from the rail track when the accident occured, SP (City) Martand Prakash Singh said
NEW YORK (Reuters) -The price of cryptocurrencies plunged and crypto trading was delayed on Tuesday, a day in which El Salvador ran into snags as the first country to adopt bitcoin as legal tender. Shares of blockchain-related firms also fell as crypto stocks were hit by trading platform outages. But the major focus was on El Salvador, where the government had to temporarily unplug a digital wallet to cope with demand.
By Joseph White and Sanjana Shivdas (Reuters) -The head of Apple Inc's car project, Doug Field, is going to work for Ford Motor Co to lead the automaker's advanced technology and embedded systems efforts, a hiring coup for Ford Chief Executive Jim Farley.