Italy Concerns Knock Stocks, Euro Off

European stocks gave up early gains and bond yields recovered from lows as early elections loomed in Italy after the anti-establishment 5-Star and League parties abandoned plans to form a government, Reuters reported. European stocks were a mixed bag, after Asian shares mostly gained on signs the United States and North Korea were still working towards holding a summit. Early in the European session, the euro, Italy’s government debt and its FTSE MIB stock index all rose in opening trades. But those gains quickly dissipated. European stocks were trading flat on the day and Italian bond yields were up three basis points on concern new elections would turn into a debate on euro membership. The euro initially rallied 0.6% to $1.173, pulling itself above 6 1/2-month lows, but traded only 0.1% higher at $1.165. The single currency strengthened by 0.8% against the Swiss franc, rebounding from near three-month lows to trade at 1.163, but also gave up much of those gains.