Italy's election results give euro and Italian stocks and bonds a jolt

London

THE euro-sceptic populist, right-wing, anti-immigration parties have done better than expected. Italy has now entered a period of political and economic instability while parties form alliances to gain power.

The euro, bonds and shares were already falling ahead of the polls, but the actual results were still a shock.

Initially, the euro tumbled by 0.8 per cent against the US dollar from Friday's level. It revived slightly, but is still 2.6 per cent below its mid-February peak. Moves against the Singapore dollar were similar and at 12.30 pm Italian time,…