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Investors worried about gov't stability

Published:Tuesday | October 1, 2013 | 12:00 AM
Silvio Berlusconi talks to his supporters during a demonstration organised by the PDL party for its leader in front of his residence in Rome, Italy, yesterday.

ROME (AP):

Investors are reacting with concern to the possibility that Italy's government might collapse this week, but experts say the political turmoil has not yet reached the point where it threatens to reignite Europe's financial crisis.

Milan's stock exchange was down 1.9 per cent at 17,309.71 yesterday, the first day of trading since Silvio Berlusconi demanded that the five ministers from his political party quit Premier Enrico Letta's coalition government.

Berlusconi had demanded the resignations in a show of solidarity ahead of a Senate vote to strip him of his seat because of his tax-fraud conviction. Letta has called a confidence vote in Parliament this week to determine if his five-month-old government can survive.