The Norman Transcript

Nation/World

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
Nation/World
  • Air Algerie jet crashes with 116 on board

    OUAGADOUGO, Burkina Faso — An Air Algerie jetliner carrying 116 people crashed Thursday in a rainstorm over restive Mali, and its wreckage was found near the border of neighboring Burkina Faso — the third major international aviation ...

    July 25, 2014

  • Very bad week: Airline disasters come in a cluster

    WASHINGTON — Nearly 300 passengers perish when their plane is shot out of the sky. Airlines suspend flights to Israel’s largest airport after rocket attacks. Two airliners crash during storms. Aviation has suffered one of its worst weeks ...

    July 25, 2014

  • Hong Kong firms on edge as democracy rally blockade looms

    HONG KONG — As activists vow to shut down Hong Kong’s financial district in protest at China’s attempt to hobble democratic elections in the city, businessman Bernard Chan is preparing for the worst. Chan’s investment company has added ...

    July 25, 2014

  • Planes with Ukraine bodies arrive in the Netherlands

    KHARKIV, Ukraine — Two more military aircraft carrying remains of victims from the Malaysian plane disaster arrived in the Netherlands on Thursday, while Australian and Dutch diplomats joined to promote a plan for a U.N. team to secure the ...

    July 25, 2014

  • Iraq elects new president as attacks kill dozens

    BAGHDAD — Iraqi lawmakers elected a veteran Kurdish politician on Thursday to replace long-serving Jalal Talabani as the country’s new president in the latest step toward forming a new government. But a series of attacks killed dozens of ...

    July 25, 2014

  • Doctor fired back at gunman

    DARBY, Pa. — A doctor grazed by gunfire from a patient who had entered his office in a suburban hospital’s psychiatric unit stopped him by returning fire with his own gun and injuring him, authorities said....

    July 25, 2014

  • UN school in Gaza caught in cross-fire

    GAZA CITY, Gaza Strip — A U.N. school in Gaza crowded with hundreds of Palestinians seeking refuge from fierce fighting came under fire Thursday, killing at least 15 civilians and leaving a sad tableau of blood-spattered pillows, blankets ...

    July 25, 2014

  • Tornado slams Virginia campground

    CAPE CHARLES, Va. — The sky turned black and cellphones pinged with emergency messages. Moments later, a tornado ripped through a sprawling, carnival-like campground Thursday, snapping dozens of trees and flipping over RVs....

    July 25, 2014

  • Arizona inmate dies two hours after execution begins

    PHOENIX — A condemned Arizona inmate gasped and snorted for more than an hour and a half during his execution Wednesday before he died in an episode sure to add to the scrutiny surrounding the death penalty in the U.S....

    July 24, 2014

  • 48 dead after Taiwan plane crash

    TAIPEI, Taiwan — Family members of victims of a plane crash were flying to the small Taiwanese island today where the plane had unsuccessfully attempted to land in stormy weather, killing 48. There were 10 survivors, and authorities were ...

    July 24, 2014