Stocks lower as Draghi talks tough on Italy

|By:, SA News Editor

"There is no evidence that to undermine all the [budget] rules will lead to prosperity, but it will carry a high price tag for all actors," says ECB chief Mario Draghi, likely referencing Italy's plan to boost borrowing. "Rules must be respected in the self-interest of all parties, especially the weaker ones."

The ECB, of course, holds nearly €200B of Italian government paper.

Draghi's comments have helped send Italian bond yields shooting higher, and Italian shares (NYSEARCA:EWI) sharply lower (down 1.9% at last check). Europe overall (NYSEARCA:FEZ) is down 0.5%.

The selloff is spreading to the U.S., where the S&P 500 (NYSEARCA:SPY) is down 1.2% and the Nasdaq (NASDAQ:QQQ1.7%.

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