Inconclusive elections could weigh down on Italian banks.
Global Banking News-March 5, 2018--Inconclusive elections could weigh down on Italian banks
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Global Banking News - 05 March 2018
Investors dumped Italian bonds and banking stocks on Monday after a national election delivered a hung parliament, Reuters has reported.
The anti-establishment 5-Star Movement became the largest single party in the nation. Concerns are rife that power will go to a more anti-euro coalition, which would demand higher welfare spending and challenge European Union budget restrictions.
Italy's banking stock index fell, which analysts believed are on track for its biggest one-day loss in more than a year.
Bank stocks have been hit because of concerns that any coalition emerging from negotiations could likely weaken Italy's fiscal stance.
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