Markets jittery on US government's partial shutdown
LONDON (AP) - The partial shutdown of the US government weighed on markets on Wednesday, though mounting hopes that Italy's government will win a confidence vote pushed the Milan index to a two-year high.
The political upheavals in Washington DC and Rome have been the main points of focus in financial markets this week. While the gridlock in the US capital shows few signs of resolution, developments in Italy point to a crisis averted.
In a surprise move, Silvio Berlusconi announced that his party will vote to support the government of Premier Enrico Letta, a major turnabout that signals he was defeated in his efforts to bring down the government.
With Mr Letta's government poised to continue, Italian shares have surged. Milan's FTSE MIB was up 1.5 per cent at 18,242.