Pre-market Update: Global Stocks Tumble as Italy Fears Come Back

Global stocks are taking a header today as investors fret over Italy.  Italian government bonds sold off after the economic head of the ruling League party said most of Italy’s problems could be solved by having its own currency.  Moreover, this reinforces the view that the Italian government is anti-euro and could enact policies that could create a crisis in the Eurozone.

On top of that, oil prices continue to climb as Iranian crude exports decline ahead of US sanctions.  Oil is the qunitessential industrial commodity.  Accordingly, rising oil prices are certain to have an adverse affect on global economic growth and inflation.

Asian stocks started the day down for the most part.  A couple of the notable moves across Asia today:

  • Japan’s NIKKEI 500 Index moved up 0.35%;
  • The Shanghai Composite Index was closed for a national holiday;
  • Hong Kong’s Hang Seng Index plummeted 2.38%;
  • South Korea’s KOSPI Index is down 1.25%;
  • India’s SENSEX Index closed for a national holiday.

European stock markets are falling at the open today as they focus on Italy.  A look at some of Europe’s top indices shows:

  • London’s FTSE Index is down 0.61%
  • The German DAX Index dropped 0.93%;
  • The FTSE Italia All Shares Index jumped 1.10%;
  • The French CAC 40 Index fell 1.18%  at the open.

European stock markets will continue to focus on issues within their own markets such as the Brexit negotiations and the Turkish Lira Crisis.  Additionally, European investors are keeping a close eye on developments in Italy as investors have become fearful of potential anti-EU measures by the new government.

US Futures Are Trading Lower in Pre-Market Action

The U.S. stock market is moving strongly lower in pre-market trading.   Indeed, the NASDAQ and the S&P 500 futures are down 0.56% and 0.38%, respectively.

Investors will continue to take their cues from the news cycle heading.  Accordingly, any new developments in the Trump legal morass or global trade disputes could see it drive markets in either direction.

See more of our analysis here.

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Al Basoglu

I am a financial services professional with over a decade of experience in various roles. I've lived and worked abroad in 5 different countries while pursuing personal and professional challenges. My interests include markets, history and different cultures. I tend to weave all of my interest into my analysis and articles.