Italy's shock election result reignites volatility within troubled eurozone

The result of Italy's presidential election shocked markets last week and sparked renewed volatility, with none of the four competing political parties emerging victorious, but what does it mean for investors now?

In a suprise result, none of the four competing political parties manage to win an overwhelming majority at the polls. This outcome reignited worries about the eurozone crisis and highlighted the anti-austerity mood in Europe, as 57% of Italians voted for parties that oppose austerity policies. In reaction Europe’s VSTOXX index, which tracks market volatility by reflecting demand for protection against a drop in major European equities, jumped to a 2013 high of 24.73 last week. Europe’s leading equity markets also took a beating, as risk-averse investors rushed to sell off stocks. ...