Eurozone shares hit a road bump yesterday as heightened risk of a snap election in Spain piled new political anxiety on investors already shaken by the new Italian government's plans to ramp up fiscal spending. Spanish and Italian stocks fell sharply, with peripheral banks firmly in the firing line, while German shares and Bunds - considered a safe haven - made gains as investors pulled money from peripheral Eurozone debt and stocks. Spain stole the spotlight from Italy as pressure built on Prime Minister Mariano Rajoy, with opposition parties calling for a no-confidence vote and a snap election over a corruption case involving members of his party. The Eurozone's bank stock index fell 1.9pc. Barclays analysts said they saw a snap Spanish election as increasingly likely, but added: "It is currently very unclear what the exact path to the next election would be."

Source: Irish Independent May 26, 2018 01:30 UTC