Market Extra: Italian stocks, bonds the biggest losers of political unrest in Rome

Losses piled up Tuesday for Italian stocks and bonds, which were rocked by the prospect that Italians will head to the polls again this year as the country careened towards a collision course with the European Union.

Worries about political instability in Italy ramped up after Italian President Sergio Mattarella on Monday blocked two antiestablishment parties from taking power by rejecting their nomination of euroskeptic Paolo Savona to serve as economy minister. Mattarella then asked Carlo Cottarelli, a former International Monetary Fund official, to work on forming a new government.

Those moves led to calls by the populist 5 Star Movement and League parties, both of which have expressed anti-euro views, for Italy to hold new elections.

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