[ad_1]
Global stock markets caused a strong sell Monday amid growing concern over a fiscal confrontation between Italy and the EU and the prospect of weaker growth in the economy. 39, Chinese economy.
Italian lending costs jumped and the euro fell on foreign currencies with the intensification of the war of words between Rome and Brussels, while Wall Street shares and shares in the stock market rose sharply. Other major international markets have fallen in the face of growing concerns over the US-China trade war.
Italian bond yields rose 30 basis points to the highest level since early 2014 after the attack by European Council President Matteo Salvini against European Commission President Jean-Claude Juncker and the Commissioner for Economic Affairs, Pierre Moscovici, enemy enemies of the government. Europe .
Speaking at a press conference with French far-right leader Marine Le Pen, he said the country would not yield to financial market pressures or its government spending plan. "We are against the enemies of Europe – Juncker and Moscovici – locked up in the Brussels Bunker," he said.
Brussels has expressed concern to Italy over this plan, as it would mean that the country has a larger budget deficit – the gap between tax revenue and public spending – compared to previous forecasts for the next three years.
Rome must submit its draft budget to the Commission, the EU's executive body, which will check if it complies with EU rules by 15 October.
The euro lost nearly 0.5% against the dollar, while the Italian stock market lost 2.4%. The FTSE 100 closed down more than 1% at 7,233.33, while other European markets also posted losses.
Sign up for Business Today daily email or follow Guardian Business on Twitter at @BusinessDesk.
Investors fear that Italy's expansionary fiscal plan, released last week, will only turn against its populist government, as it could potentially raise the cost of borrowing and increase its debt, which is already the largest as a percentage of the country's GDP. the euro zone behind Greece.
The Dow Jones Industrial Average Index dropped in the afternoon in New York after a wider sell that analysts attributed to investor concerns over the US-China trade war and its potential impact on Chinese economic growth. The slowdown in growth in China could affect the global economy as the country is a major buyer of goods and raw materials from the rest of the world.
It is also feared that the US economy will begin to slow down after recording one of the strongest growth rates since this year's financial crisis, just as the US Federal Reserve has raised its rates. ;interest.
