Asian shares and euro fall sharply as Italy fears spread to global markets

The single currency hits a 10-month low as concern about US tariffs on China adds fuel to selloff in stock markets

Shares in Asia fell sharply and the euro sank to a 10-month low against the US dollar as concern about the political turmoil in Italy spread through international financial markets on Wednesday.

Renewed fears of a trade war between the United States and China also contributed to the negative mood after Donald Trump announced $50bn worth of tariffs on Chinese goods just days after his treasury secretary said the trade war was “on hold”.

Related: Italy at risk of new financial crisis in wake of coalition’s collapse

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