As Italy faces regime change, the political upheaval has spooked international markets on Tuesday plunging Asian markets and Euro.
The bout of nervousness was triggered after Italy’s central bank chief Ignazio Visco warned that Rome was on the cusp of losing investors’ hard-won trust.
European and US banks shares were the first to nose-dive following the announcement.
Italy’s own banks were the hardest hit, with the country’s largest financial institution UniCredit falling 5.6 percent. Lenders across Eurpoe also sold off.
The Dow Jones Index Shed 1.6 percent and S&P 500 lost 1.2% coming after Italy’s FTSE MIB closed 2.7 percent.
Our own Sensex has shed more than 100 points in early morning trade.
The Italian Crisis
Italy faces regime change from widespread call for impeaching President Sergio Mttarella.
At the backdrop is a power struggle between Eurosceptic populists winners of the March election and pro-EU establishment politicians.
Italy’s economy – the eurozone’s third-largest – has been frail for years.