Investors Ignore Italian Politics. At Their Peril?

Lega Nord far right party leader Matteo Salvini pushes a thumb up as he votes for general elections on March 4, 2018 at a polling station in Milan. Italians vote today in one of the country's most uncertain elections, with far-right and populist parties expected to make major gains.
Lega Nord far right party leader Matteo Salvini pushes a thumb up as he votes for general elections on March 4, 2018 at a polling station in Milan. Italians vote today in one of the country’s most uncertain elections, with far-right and populist parties expected to make major gains.

That widening signals investors do see increased political risk in Italy, but the spread between the two is still tighter than it was for most of 2017, let alone during the European sovereign debt crisis.

Italian bank stocks fell by 2.6%, returning the FTSE Italia Banks index to levels last seen in early January.

But there was no knock-on effect elsewhere in the eurozone….

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