Stock Market Responds To Election In Italy

The elections in Italy have caused considerable worries in Europe and elsewhere.  A coalition government will have to be formed between parties that have very different ideas about how to govern the country.  Italy may have to deal with political gridlock in a very difficult economy.  Eurozone markets were down over 2% and interest rates rose on Italian debt.  Markets in Britain, Asia and the US were also down.  Italy is faced with the difficult task of restoring growth while it is also attempting to implement unpopular structural reforms.