Italian elections set to grip European bond markets
Italy's two day elections are due to close today at 14:00, with leaked polls showing the centre-left coalition leading slightly ahead of Berlusconi's centre-right alliance (Financial Times).
Our reporter Marion Dakers writes:
Meanwhile, markets are awaiting the outcome a fiercely-fought Italian election that could foster more financial instability if the polls bring an unstable government.
…
Centre-right leader Silvio Berlusconi, who has pitted himself against anti-establishment comedian Beppe Grillo and centre-left Pierluigi Bersani, endured protests from topless protesters as he cast his vote in Milan yesterday.
(Full article).
Crédit Agricole's Head of European Rates Strategy Luca Jellinek:
There is little clarity about the outcome due to the prolonged opinion poll “black-out” period and rather intricate electoral system. This dangerous uncertainty has been reflected by wider periphery risk spreads and, specifically, Italian bond underperformance.
(eFX News).
These elections spell the return of Italy to direct democracy after 15 months of an externally imposed technocratic regime led by Prime Minister Monti.