European stocks suffer over Italy flare-up

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LONDON: Eurozone equities were held down on Tuesday (May 28) as investors tracked a brewing political fight between Brussels and Rome, and ...

LONDON: Eurozone equities were held down on Tuesday as investors tracked a brewing political fight between Brussels and Rome, and continued to digest the outcome of elections for the European Parliament, dealers said.AdvertisementLondon, where investors returned from a long weekend, did a little better as a weak pound helped stocks stem losses.

Although voters shifted allegiances in the EU elections, mainstream parties managed to retain control."European stock markets are in the red as Italian government bond yields have ticked up over fear of a political fight between Rome and Brussels," said analyst David Madden at CMC Markets UK. "All my energy will go into changing these rules from the past," said Salvini, who has been emboldened after his far-right League party topped Sunday's European Parliament elections in Italy.

British Prime Minister Theresa May's Conservatives finished in fifth place with nine per cent - their worst performance since 1832. Qnd the main opposition Labour Party was also punished for not clearly spelling out its Brexit stance. Trump's visit came as a trade row between the US and China rumbles on, with no date set for tariff negotiations to resume.

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