11/6/2022 0 Comments One of us is crying mamma mia 2Italy is the biggest of the turbulent economies within the Eurozone and further uncertainty will raise the risk premium for banks as well as Italian borrowing rates and the possibility for a default. The financial giant is among the most volatile of the blue chips, and financial companies are particularly sensitive to news such as today's events that could jeopardize the Eurozone. Not surprisingly, Bank of America ( NYSE:BAC) led the losers on the Dow. Seemingly overlooked by investors today was the upcoming sequester, which President Obama addressed, asking Congress to avoid the broad spending cuts "with just a little bit of compromise." With three days left until the deadline, however, both parties seemed at a standoff with no major steps being taken. Italians' disgust with their government could be seen in former comedian Beppe Grillo's newly formed Five Star Movement party winning 25% of the vote and current Prime Minister Mario Monti's party winning just 10%. The vote will likely lead to an unstable coalition government, and has sparked concerns that the new government may not control spending and keep the deficit below 3% of its GDP, as required by the European Central Bank. The broad-based S&P 500 was down more than 1.8%, and the VIX, Wall Street's volatility indicator, jumped 34%.Ĭoncerns about Europe had been relegated to the back burner for the past few months, but returned with a vengeance as Italians sent a strong anti-austerity response at the ballot box today. Follow me on Twitter to see my latest articles, and for commentary on hot topics in retail and the broad market.įollow a strong opening, the Dow Jones Industrial Average ( DJINDICES:^DJI) fell sharply on Italian election worries, finishing down 216 points, or 1.6%, with 100 points disappearing in just the last 15 minutes of trading. I write about consumer goods, the big picture, and whatever else piques my interest.
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