By Steve Goldstein, MarketWatch
Europe stocks on Tuesday turned lower, as political risk re-emerged in the wake of Italian Prime Minister Guiseppe Conti resigning.
Conte has told senators he is handing in his resignation because his right-wing coalition partner, the League party led by Interior Minister Matteo Salvini, has decided to yank its support for the populist government.
Conte said he will go later Tuesday to officially inform Italian President Sergio Mattarella of his decision. Mattarella, as head of state, could ask Conte to stay on and try to find an alternative majority in Parliament, or accept his resignation and see if some other leader can forge an alternative coalition.
Failing that, Mattarella could dissolve Parliament, setting the stage for a new general election as early as October.
Elsewhere, the German DAX /zigman2/quotes/210597999/delayed DX:DAX +0.86% fell 0.7% to 11638.67, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.90% fell 0.7% to 5336.94 and the U.K. FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +2.04% dropped 0.8% to 7130.95.
French supermarket operator Casino Guichard-Perrachon /zigman2/quotes/203038848/delayed FR:CO +1.56% climbed 6.9% as it said it’s planning to sell 2 billion euros of assets, having already sold 2.1 billion euros.
Pandora /zigman2/quotes/205851124/delayed DK:PNDORA +0.95% shares rallied 10% in Copenhagen as the jeweler announced new restructuring measures after reporting a 50% profit drop in profit.
<STRONG>— The Associated Press contributed to this article</STRONG>