Analysts at ANZ explained that yesterday’s sharp moves were partially, but not completely, reversed. Markets remain wary, with political developments still very much unfolding.
Key Quotes:
“Italy’s President Sergio Mattarella and PrimeMinister-designated Carlo Cottarelli have decided to give populist parties, League and Five Star, more time to seek agreement on a potential government. Five Star leader Luigi Di Maio later said the parties are willing to propose a new Finance Minister, saying that they never sought to leave the euro.
Later, League leader Matteo Salvini said he won’t change the cabinet line up to suit the president. While this leaves open the possibility that a new political government will be formed, a fresh election is still a distinct possibility and nervousness about Italy staying in the euro remains.”
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