A recovery in Italian stocks has been slowed by news that the leader of the right-wing Lega party has called for a new election.
Matteo Salvini said Wednesday that he wanted new elections in Italy "as soon as possible."
Salvini added that holding a fresh vote in late July would be disruptive for many Italians, but he noted that "the earlier we vote, the better, because it's the best way to get out of this quagmire and confusion."
Italian stocks had been in full recovery mode in early trading Wednesday after reports that Prime Minister-designate Carlo Cottarelli has been holding further talks with President Sergio Mattarella about a new technocratic government.
Assets were also boosted by reports that the populist Five Star Movement (M5S) was re-igniting talks to form a coalition with Lega. The two parties failed in their first attempt at the weekend when Mattarella rejected the appointment of an 81-year-old euroskeptic as their proposed finance minister.