Italian equities and bonds have sold off in morning trading today, with contagion spreading across European markets, as fears of a snap election as early as August intensified.
Investors were spooked by an intervention from Italian President Sergio Mattarella at the weekend to prevent the formation of a government by populist Eurosceptic parties Five Star Movement and the League. Investment Conundrums: Tilney's Godding - Italian political risk persists The pair performed well in the March election but the resulting hung parliament has meant the EU's fourth largest economy has been without a government since then. Fears over further political upheaval in the country sent yields on two-year Italian bonds soaring to as high as 2.83% on Tuesday morning (29 Ma...
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