European Central Bank sources: No need to intervene in Italy crisis

European Central Bank sources: No need to intervene in Italy crisis

European Central Bank sources: No need to intervene in Italy crisis

"The ECB could safeguard the remaining eurozone members but it would be merely controlling the disaster", one of the sources said. "That possibilities should not be ignored", said Minori Uchida, chief currency strategist at MUFG Bank.

The U.S. announcement pushed stocks lower, although a weaker yen supported Japanese stocks and firm exports boosted South Korean markets.

Hardy recalled a promise made in 2012 by European Central Bank President Mario Draghi to keep the euro intact. "I see a lot of uncertainty, which results in a lot of volatility".

Juncker said at a conference Thursday that "Italians have to take care of the poor regions of Italy".

Adding to the selling pressure was a brewing crisis in Spain, where Prime Minister Mariano Rajoy faces a no-confidence vote after his party was found guilty of benefiting from illegal funds in a massive graft trial.

The yield gap over benchmark 10-year German bond yields tightened to 223 basis points from around 242 bps late Thursday. Madrid's IBEX bourse was down nearly 2 per cent. The Nasdaq composite climbed 0.1 percent to 7,433.85.

On Wednesday Japan's Nikkei 225 stock index dropped 1.5%, South Korea's Kospi dropped 1.8% and the Hang Seng in Hong Kong slipped 1.2%.

E-Mini futures for the S&P500 also gave up early gains to be down 0.5 per cent.

The New Zealand dollar fell below 69 United States cents and dropped against the yen as Italy's political hiatus sent Italian bond yields soaring and prompted investors to look for safe havens.

The euro had spiked to US$1.1728 earlier on Monday after Italian President Sergio Mattarella rejected a vocal critic of the single currency as economy minister.

Mining companies and metals companies in the FTSE 100 are all on a rise this morning, a counter-intuitive move given that the U.S. threatened Thursday to start charging 25% tariffs on imports of aluminium and steel from Europe, Canada and Mexico. A day later, Trump said he had reconsidered, and officials from both countries were meeting to work out details.

The euro struggled near a 6-1/2-month low against the U.S. dollar on Tuesday, the bounce seen at the start of the week fading out as investors took a grim view of Italy seemingly heading towards another election. Yields move inversely to price.

Analysts will next focus their attention on US inflation data due later in the week which could provide clues to future interest rate rises ahead of the Federal Reserve policy meeting next month.

Earlier Tuesday, Asian stock markets closed mostly lower, with traders keeping an eye on oil prices, which have tanked since Saudi Arabia and Russian Federation indicated they could raise output after abiding by a self-imposed cap for two years. Germany's DAX lost 1.1 percent. Brent crude, used to price global oils, rose 0.6 percent to $75.80 per barrel in London.

Royal Bank of Scotland Group gained 1.6 percent after Standard & Poor's upgraded the long-term ratings of National Westminster Bank Plc. Gold and platinum producer Anglo American traded 2.76% higher at 1,846.60 while Rio Tinto, Glencore and Chilean miner Antofagasta were also among the top ten movers higher.

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