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Political Crises in Italy, US Causing Investors To Worry

(Reuters)—Jitters over political fights in Washington and Rome rattled investors on Monday, sending world shares and the dollar lower while lifting safe haven assets such as the Swiss franc and Japanese yen.

Deadlock in the U.S. Congress has made it increasingly possible the government will run out of money from midnight, while a split in Italy's ruling coalition has heightened the prospects of fresh elections that could delay economic reforms.

Ten-year Italian government bond yields jumped 31 basis points to 4.73 percent.

"We have a bit of a nasty combination of U.S. and Italian political problems," said Arne Lohmann Rasmussen, head of FX research at Danske Bank.

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