With elections approaching, Italian indexes are bracing for volatility and uncertainty

13.02.2018 / 20:24

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Today could be the day Italian stocks woke up to the election risks. True, the decline is in-part due to the broader dip in euro-area stocks as still-wary investors sell the bounce. But a look across the market suggests there may be more going on here, now that the the vote is less than three weeks ,and no party is seen likely to get an outright majority.

For a start, FTSE MIB declines are worse than their major European counterparts today. Moreover, losses were led by lenders, which encapsulate at lot of the nationwide risks. Some caution on banks is also creeping into credit default swaps, with Italian banks Mediobanca, Intesa Sanpaolo and UniCredit among some of the worst performers in the iTraxx Europe in the past week.

But the election qualms would need to get louder to really hurt the index.

Source: Bloomberg Pro Terminal

Trader Bozhidar Arabadzhiev

Varchev Traders

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With elections approaching, Italian indexes are bracing for volatility and uncertainty

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