By Dave Morris
The success of Italy’s euroskeptic party in European elections sent sovereign bond yields surging, infecting regional markets including London.
How did markets perform?
The U.K.’s FTSE 100 (FTSE:UK:UKX) was down 0.1% at 7,269.8, after being closed Monday.
The pound (XTUP:GBPUSD) dipped 0.1% to $1.2658, after edging down 0.1% Monday.
What’s moving the markets?
Italian banks were stung by the latest from Brussels following the European election results Sunday, where right-wing anti-Euro party Lega Nord topped the polls with 34.3% of the vote. With a clash looming among Italian deputy Prime Minister Matteo Salvini and the European Council over budgetary restraint, the spread among Italian and benchmark German 10-year government bonds shot to 2.88.
Bloomberg reported that , in a press conference during a state visit to Japan, U.S. President Donald Trump described the current state of trade negotiations with China saying: “They would like to make a deal. We’re not ready to make a deal.” He added that U.S. tariffs on Chinese products could go up “very substantially”.
Which stocks are active?
A Goldman Sachs report on Rio Tinto PLC (LON:UK:RIO) sent shares up 3.1%. Analysts upgraded the miner to a buy on expectations of increased demand for iron ore.
NMC Health PLC (LON:UK:NMC) shares shot up 3.9% as the company upgraded its earnings forecast for 2019. The health-care provider said it sees changes to accounting standards leading to higher earnings before interest, taxes, amortization and depreciation of between $665 million and $675 million.
AstraZeneca PLC (LON:UK:AZN) shares were down 1.3%, after a report in The Wall Street Journal indicated that the company’s new cancer research chief wanted to take the bold yet unorthodox approach of pursuing drugs targeting early stages of the disease rather than later ones.