>> A renewed trade spat between the U.S. and China, nuclear arsenal talks between Washington and Pyongyang that may or may not happen. And now, global investors have something else to worry about, a political crisis in one of the the Euro Zone's biggest economies. I'm Conway Gidons in New York.
Political chaos in Italy, causing investors to run to the safety of the bond market. And that is causing borrowing costs to tumble on Tuesday. Now the drop in rates comes at a time when global banks were just starting to enjoy making more money from rising interest rates. And now the thought is that party could come to an abrupt end, and that is kicking financial stocks in the gut.
Big stock market losses from JP Morgan Chase, Goldman Sachs, and American Express, taking the DOW down nearly 400 points. But the political crisis isn't just hurting banks. The inability of Italy's new Prime Minister to put together a government, could force another election only four months after the last vote.
And this fear the next election could pull Italy the Euro's third largest economy further away, if not out of the Euro. That's a risk too great for investors who have been gorging on global exposure as the world's economy picked up. Just about every single stock on the DOW 30 blue chip index was down, along with stock markets across Europe, Italy suffering its biggest stock market slump in two years.