Markets shrug off prospect of new Italian government – business live

All the day’s economic and financial news, as Italy’s League and Movement Five Star move towards forming a new government

From Rome, our correspondent Angela Giuffrida has the latest on the Italian government talks:

Italy’s anti-establishment Five Star Movement (M5S) and its far-right partner, the League, are preparing to present their government programme to President Sergio Mattarella on Monday and name a prime minister.

Matteo Salvini, the leader of the League, and M5S counterpart Luigi Di Maio, worked over the weekend in Milan on a policy document in which they are expected to take a tougher approach towards illegal immigration and the EU.

Related: Italy’s M5S and League parties poised to name a prime minister

Italy’s stock market has dropped a little further into the red, as traders in Milan brace to learn who their next prime minister might be.

Despite the gains made in Asia, European markets started off on a cautious tone as increasing global tensions played a part in the decline.

With Italy struggling to form a government and the UK government facing internal struggles to cope with Brexit, banking and technology pulled Stoxx Europe 600 lower over the sentiment.”

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