Italian market stress

The Italian markets have been hit by a succession of sell-offs since two populist eurosceptic political parties formed a governing coalition in late May. Rising Italian bond yields have since caused the coalition to retrench but political tension between Brussels and Rome lingers. Italy’s economy is under strain, as are Italian banks. Here’s the best of the FT’s opinion and analysis.

Coalition’s budget plans have intensified volatile trading for stocks and bonds

Sovereign debt sell-off leaves lenders with paper losses that have hurt stock

A guarantee scheme is crucial, writes economic advisor to German government

Investors scrutinise eurozone imbalances as they await new government’s budget