The price of Italian bonds remained unsettlingly high today, pressuring stock markets across Europe and Wall Street.
There were hopes last week that the resignation of Italian prime minister Silvio Berlusconi would go along way toward easing Europe's political problems and ultimately halt the roiling debt crisis.
But Italy paid a 6.29 percent yield on the 3 billion euros worth of 5-year bonds it sold Monday.
That's the highest rate that Italy has paid on its debt since 1997, according to the BBC.
Yields over 7 percent led to bailouts of Greece, Ireland and Portugal, but Italy is seen as too big for the European Union to rescue, making the country the debt crisis' current pivot point.
The FTSE 100 in London closed down 0.5 percent at 5,519.04, while the CAC 40 in Paris finished down 1.3 percent at 3,108.95. The DAX in Frankfurt fell 1.2 percent to 5,985.02 and the FTSE MIB in Milan slumped 2 percent to 15,464.45 points.
Fashion and luxury stocks were mixed in Europe. Marcolin fell 2.2 percent to 3.85 euros, and Hugo Boss dropped 4.7 percent to 64.95 euros following news that Permira had cut its stake in the company.
Those that rose included Burberry, which was up 3.2 percent at 14.30 pounds, and Ferragamo, which closed up 3.2 percent at 12.27 euros, following news of an 85 percent rise in its net profits in the first nine months of the year.
The euro traded for $1.38 Monday, while the pound traded for $1.61.
On Wall Street, the S&P Retail Index performed comparatively well, slipping just 0.2 percent, or 1.16 points, to 547.06, but the Dow Jones Industrial Average fell a slightly steeper 0.6 percent, or 74.70 points, to 12,078.98.
The retail decliners included J.C. Penney Co. Inc., which fell 2.8 percent to $32.98 after special charges led it to heavy third-quarter losses; Sears Holdings Corp., down 2.8 percent to $72.25, and Aéropostale Inc., off 1.7 percent to $16.72.
Investors are also fretting over a possible recession in Europe, which could cause troubles for the global economy as well.
Eurostat, the European Union’s statistics agency, said industrial production in the Euro area fell 2 percent in September, compared with August, and fell 2.2 percent compared with a year earlier.
Although the decline was not as severe as some had forecast, commodities stocks such as Vedanta Resources and engineering solutions firm Weir Group were among the biggest decliners in the FTSE 100.
London’s newly opened @designmuseum will look back on the life and work of Azzedine Alaïa in a show that the designer helped to curate before he died of heart failure last month. The retrospective, which Alaïa had worked on with Mark Wilson, chief curator of the @groningermuseum, will look at the impact of his work worldwide. The show, “Azzedine Alaïa: The Couturier,” will run from May 10 to October 7. Read more about the exhibit on WWD.com #wwdnews #wwdfashion (📷: @zefashioninsider)
@Pharrell and his wife Helen Lasichanh were among the stars that came out to celebrate @rimowa’s first pop-up concept shop. The space, which is located on Rodeo Drive in Beverly Hills, draws inspiration from airport luggage carousels and lounge areas – and features the company’s luggage and accessories. If the pop-up is successful it could pave the way for addition temporary shops throughout the world. #wwdfashion (📷: Owen Kolasinski/BFA)
@carineroitfeld celebrated @crfashionbook’s first calendar last night with a dinner party at Spring Place in Manhattan. Photographed by @stevenkleinstudio, the calendar takes on a fitness theme and features @joansmalls, @gigihadid, @danielle_herrington_ – pictured here – and more. “[Carine Roitfeld] wanted me to feel sexy and she wanted me to be myself and feel it out on my own and do what I felt was right,” said Herrington, aka Miss October. #wwdeye
@saintrecords and @virgilabloh last night at @americanexpress’ “A Night With Success Makers” event. “I always bring it back to community because without that I wouldn’t have the courage,” said Knowles when asked how she has gotten where she is now. Read more highlights from their conversation on WWD.com. #wwdeye (📷: @lizdoupnik)
This Just In: Industry sources have told WWD that Anastasia Soare is rumored to be considering selling her beauty business, @anastasiabeverlyhills. According to those sources, Soare has tapped investment bank Imperial Capital to explore sale options for her eponymous beauty brand –– and with at least $340 million in net sales, this would be a big deal. Put in context of other recent transactions for makeup companies, Soare’s price tag could be in the billions if she were to sell the whole thing. #wwdnews #wwdbeauty (📷: @clint_spaulding)
@assouline’s latest book, “The Spirit of Bentley: Be Extraordinary” captures the adventurous attitudes and opulent lifestyles of @bentleymotors’ most creative owners and enthusiasts throughout the U.K. The 292-page hardcover has a section dedicated to showing its team of skilled artisans and photos of its most colorful owners, from George Bamford to designer @alicetemperley, pictured here by Aline Coquelle. #wwdeye
@google released its report on the most popular search terms this year. For fashion brands, the list was led by @gucci, the luxury brand that stunned the market last October when it pledged to stop using fur. Runner ups were @supremenewyork and @fashionnova, along with more established brands like @louisvuitton, @chanelofficial and @ysl. #wwdfashion (📷: @aitorrosasphoto)
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)