The Italian stock market reacts to the rally after the victory of the right

The Italian stock market reacts to the rally after the victory of the right

With more than 90% of the votes counted – both for the Senate and the House of Representatives – the FdI got 26.5% of the vote; It is followed by the Democratic Party led by Enrico Letta with 19.4%. and the five-star Giuseppe Conte 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, which are collapsing by as much as 1%. Regardless of the political turn in Italy, investors will be watching preliminary PMI releases from some major economies this week, as well as speeches by members of the Federal Reserve and the European Central Bank.

The rest of the European stock markets also opened lower by 0.43% for Frankfurt and 0.1% for Paris, while London advanced 0.16%, and the IBEX 35 was the most declining, 0.8%, risking 7500 points. So far this year, the ibex has lost about 14%.

The euro weakened against the dollar by 0.5% to 0.9646 “dollars”. It bottomed at $0.9551 and reached a new low in twenty years.

The European Union and the eurozone are in a difficult situation: not only is Europe experiencing a real energy crisis, but now the right wing in Italy is also recording a historic victory,” said Bank Vice President Economic Thomas Getzel, who added that the verdict of financial markets is clear.

The coming to power of the right-wing coalition could mean a sharp political change in the country in the face of the traditional and European beliefs of the former prime minister, Mario Draghi.

Investors fear that implementing populist measures will increase Italy’s debt and deficit to unsustainable levels, and even more so in the context of aggressive interest rate increases by central banks.

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