The Norman Transcript

Headlines

February 26, 2013

Stocks drop as Italy faces political disarray

NEW YORK — Stocks had their worst drop in more than three months as the prospect of political paralysis in Italy raised the specter of Europe’s debt crisis flaring up again.

The Dow Jones industrial average fell 216.40 points, or 1.6 percent, to 13,784.17, its biggest drop since Nov. 7.

The Standard & Poor’s 500 index fell 27.75 points, or 1.8 percent, to 1,487.85, dropping below 1,500 for the first time in three weeks. The Nasdaq composite dropped 45.57 points, or 1.4 percent, to 3,116.25.

Stocks had rallied in the early going as exit polls showed that a center-left coalition in Italy that favored economic reforms in the euro region’s third-largest economy was leading. That gain evaporated after a later poll predicted that the elections could result in a stalemate in the country’s legislature. The losses accelerate in the late afternoon as partial official results showed an upstart protest campaign led by a comedian making stunning inroads.

“There was confidence in this election and obviously confidence imploded,” said Ben Schwartz, a market strategist at Lightspeed Financial.

Investors dumped Italian government bonds, sending their yields higher, and erased most of an early rally in Italy’s stock market. The yield on Italy’s 10-year government bond shot up to 4.43 percent from 4.12 percent early in the day, a sign that investors’ confidence in Italy’s government was dimming quickly. The country’s benchmark stock index, the FSTE MIB, rose 0.7 percent, giving up an early gain of 4 percent.

Investors worry about the outcome of Italy’s election because it could set off another crisis of confidence in the region’s shared currency, the euro. Financial markets in both Europe and the U.S. have swooned at the prospect of Italy or Spain being dragged into the region’s government debt troubles, which have led to bailouts of Greece, Ireland and Portugal and severe disruptions in financial markets.

As stocks plunged, gauges of market sentiment indicated that investors were becoming more risk-averse and parking their money in defensive assets. The yield on the 10-year Treasury note fell sharply as investors plowed money into U.S. government bonds.

For local news and more, subscribe to The Norman Transcript Smart Edition, or our print edition.

1
Text Only | Photo Reprints
Headlines
  • Chamber Banquet During annual banquet, Chamber of Commerce promotes moving Norman forward

    Amidst the backdrop of music, dancing, dinner and fellowship, business leader Mike Fowler announced that the time for a quality-of-life initiative in Norman has come. As incoming Norman Chamber of Commerce board chairman, Fowler and ...

    April 18, 2014 1 Photo

  • Symposium speaker Paul Polik: Commerce can help and bring millions out of poverty

    How to harness the power of commerce to address social and environmental challenges in sustainable ways was the topic of discussion at the University of Oklahoma Center for the Creation of Economic Wealth’s fourth annual Social ...

    April 18, 2014

  • Amber waves turn gray as farms lose younger generation

    OKLAHOMA CITY — Jerry Pfeiffer was thrilled when his son, Kelsey, 25, announced plans to return to the family’s farm in Orlando....

    April 18, 2014

  • Postal retiree luncheon set

    A postal retiree luncheon will be 11:30 a.m. Monday at Golden Corral Buffet and Grill, 123 N. Interstate Drive in Norman. Diners will meet in the lobby. For more information, call Joyce Carle at 872-5157....

    April 18, 2014

  • Flapjack fundraiser set

    The Apple Gold Group, a franchisee of Applebee’s Neighborhood Grill and Bar, will partner with the Global Outreach Team at Go Church to host a Flapjack Fundraiser on April 26. Proceeds raised will be used by team members to purchase ...

    April 18, 2014

  • OU Hornsemble goes to the movies

    The OU Hornsemble will present a concert of music from the cinema at 6 p.m. April 27 in the Paul F. Sharp Concert Hall. Billed as “Movie-Time Music,” the ensemble will present a wide variety of cinematic music from the 1940s to the ...

    April 18, 2014

  • Judge asks pointed questions in gay marriage case

    DENVER — A judge in Colorado who will play a pivotal role deciding whether gays should be allowed to wed in the United States asked pointed questions Thursday about whether Oklahoma can legally ban the unions....

    April 18, 2014

  • Fallin disappointed SBAdenied loans

    OKLAHOMA CITY — Gov. Mary Fallin said Thursday she is disappointed that a federal agency denied a request for loans to businesses in two Oklahoma towns affected by an emergency bridge closure....

    April 18, 2014

  • Sudan: 12 die after mob attacks UN base

    JUBA, South Sudan — An angry mob of South Sudanese youths attacked a U.N. base on Thursday to harm members of an ethnic minority sheltering inside. Peacekeepers were forced to open fire, amid rampaging violence that killed at least 12 ...

    April 18, 2014

  • Woman bound over for trial

    A Slaughterville woman facing a manslaughter charge after the death of an 8-year-old child was bound over for trial this week after a preliminary hearing in Cleveland County District Court. Kimberly Dawn Wenthold, 29, was charged in ...

    April 18, 2014