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Analysts at Danske Bank suggest that while the day is thin on data releases, the main focus in financial markets will be political chaos in Italy after the Italian President Mattarella last night opposed the proposal for finance minister for the incoming government of Five Star and the League.

Key Quotes

“This raises the prospect for new elections, which would add to market anxiety toward Italy.”

“Financial markets will also focus on Spain, where the opposition called on Friday for the resignation of Spanish Prime Minister Rajoy after new corruption allegations against Rajoy’s ruling party. Political uncertainty and prospects for new elections in Spain would raise market fears of a prolonged political vacuum, as seen after the last general election.”

“The key economic releases later in the week include the US job report on Friday, preceded by the euro area HICP release for May on Thursday.”