Stocks fall in Italian turmoil, the euro is close to 6-1 / 2 month lows

SYDNEY (Reuters) – Asian stocks fell on Tuesday and the euro held near 6-1 / month lows as early elections in Italy drew near, but a revival in diplomatic talks with North Korea and a retraction in the oil prices sentiment supported.

PHOTO OF THE FILE: Illustrated illustration of banknotes in euros, April 25, 2014. REUTERS / Dado Ruvic / Illustration / Stock Photo

The broadest MSCI index of shares of Asia and the Pacific outside of Japan .MIAPJ0000PUS It dropped 0.5 percent after three consecutive earnings sessions.

Nikkei .N225 from Japan skated more than 1 percent, while South Korea's .KS11 shares fell 0.8 percent. Chinese stocks were also in the red, with the blue-chip .CSI300 down 0.6 percent.

Australia was the only black market, thanks to the gains in banking shares. [.AX] But liquidity was relatively scarce with holidays in Singapore, Malaysia, Indonesia and Thailand.

"The market focused on the continuing political situation in Italy," said Nick Twidale, an badyst at Rakuten Securities Australia, based in Sydney.

European actions were hit during the night after the 5-star anti-establishment and League parties in Italy abandoned plans to form a government.

Investors fear that Italy's election campaign will focus on the continued membership of European institutions and strengthen the hand of populist parties.

Adding to the uncertainty, Spanish Prime Minister Mariano Rajoy will face a vote of confidence in his leadership on Friday.

PHOTO OF THE FILE: A board showing stock prices is emblazoned with the logo of the Australian Stock Exchange (ASX) in downtown Sydney, Australia, February 13, 2018. REUTERS / David Gray [19659011] "This should keep risk trades pressed to the disadvantage," Twidale added. "(The) approach will remain at the intermittent US-and-North Korea summit and the US-China trade relationship as we move forward in the Asian session."

E-Mini futures for the S & P500 ESc1 gave initial gains, but they were still marginally firmer. The trade was subdued overnight with market vacations in the two largest financial centers in the world: London and New York.

The touch in the future of the actions of the United States occurred when the South Korean president, Moon Jae-in, marked more conversations and impromptu summits with Kim Jong Un, of North Korea, after the surprise meeting of the couple weekend.

Kim has reaffirmed his commitment to "complete" the denuclearization of the Korean peninsula, Moon said, while US officials said. UU They seek to revive what would be a historic meeting between President Donald Trump and Kim.


Euro EUR = EBS was the last at $ 1.1629 from Monday's $ 1.1608, its lowest level since early November.

The dollar rose 0.2 percent against a basket of major currencies to stay close to the highest since mid-November. .DXY

But against the safe harbor yen, it fell to 109 JPY = to approach a three-week low of 108.94.

Analysts will focus on the US inflation data. US, which will be published later in the week, which could provide clues to the future rise in interest rates before the Federal Reserve policy meeting next month.

In a sign that investors were flocking to safer bets, 10-year US Treasuries US10YT = RR opened to a six-week low of 2.9 percent after Monday's holiday. Another potential threat to emerging Asian markets was a [19659004] truckers' strike underway in Brazil to protest against rising fuel prices that "will potentially result in higher food prices," JPMorgan badysts said in a note. .

Brazilian stocks plunged more than 4 percent on Monday to their lowest level this year.

Oil prices remained under pressure from expectations that Saudi Arabia and Russia would pump more crude, even as US oil production increases. [O/R]

U.S. CLc1 crude futures fell to six-week lows and seemed to be set for the fifth consecutive day of declines. The July contract fell 1.6% to $ 66.81 a barrel.

Brent LCOc1 crude futures rose 0.3 percent after falling to $ 74.49 a barrel on Monday, its lowest level in about three weeks. They were for the last time at $ 75.53.

The XAU spot gold barely changed to $ 1,297.00 an ounce.

Report of Swati Pandey; Edition of Eric Meijer and Kim Coghill


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