European markets tumble as snap polls in Italy loom

Tuesday, 29. May 2018 09:04

Major European markets started the trading session with declines on Tuesday, as Italy awaits the confirmation of the newly appointed interim prime minister Carlo Cottarelli by the country's parliament. Italian President Sergio Mattarella appointed Cottarelli to lead the Italian government until the beginning of 2019, after rejecting Giuseppe Conte's eurosceptic economy minister bid, causing Conte to give up his mandate. However, the country is facing snap elections in case lawmakers don't approve Cottarelli's temporary post. Meanwhile, the United States and North Korea are engaged in contacts aimed to settle the details of a possible summit between President Donald Trump and North Korean leader Kim Jong-un.

The DAX was 0.55% lower at the open. Commerzbank AG and Deutsche Bank AG led the losses, going down 2.15% and 2.12%, respectively.

The FTSE 100 opened 0.70% lower on its first trading day of the week. Security services company G4S was the worst performer, losing 2.42%.

French CAC 40 started 0.77% lower as Peugeot fell 1.88%, while in Italy, the FTSE MIB Index plunged 2.10% continuing losses from the previous day and reaching the lowest point since early March. The banking sector in the country suffered the most, with Poste Italiane and Ubi Banca recording 3.49% and 3.41% declines, respectively.

The euro was down 0.29% against the US dollar at 9:04 am CET, going below the $1.16 mark for the first time since November last year, while the British pound traded 0.20% lower against the greenback, selling for $1.3285 at 9:06 am CET.

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Breaking the News / NI