With more than 90% of the ballots counted –both for the Senate and for the Congress of Deputies–, the FdI has obtained 26.5% of the votes; followed by the Democratic Party, led by Enrico Letta, with 19.4%; and Giuseppe Conte’s 5 Star Movement, in third place with 14.8% of voters.
In this way, the Italian stock market escapes the bad mood of the European stock markets that are collapsing up to 1%. Regardless of the political turnaround in Italy, investors will be watching preliminary PMI releases from some of the major economies this week, as well as speeches from members of the Federal Reserve and the European Central Bank.
The rest of the European stock markets also opened lower with falls of 0.43% for Frankfurt and 0.1% for Paris, while London advanced 0.16%. It is the Ibex 35 that fell the most, 0.8 %, risking the level of 7,500 points. So far this year, the Ibex has lost almost 14%.
The euro weakens against the dollar with falls of 0.5%, to 0.9646 ‘greenbacks’. It has reached its lowest point at $0.9551, reaching a new low in twenty years.
The EU and the eurozone are in a difficult situation: not only is Europe suffering from a real energy crisis, but now the right wing in Italy is also registering a historic victory,” said VP Bank Chief Economist Thomas Gitzel, who He adds that the verdict of the financial markets in this regard is clear.
The coming to power of the right-wing coalition would mean a sharp political change in the country in the face of the orthodoxy and Europeanist postulates of the previous prime minister, Mario Draghi.
Investors fear that the implementation of populist measures will increase Italy’s debt and deficit to levels that are unsustainable, even more so in a context of aggressive interest rate hikes by central banks.
Source: Ambito
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