Italian Election Stalemate

The Italian election has produced a stalemate as no party has emerged as the clear winner. This has immediately taken the shine of global equity markets, reminded that the eurozone crisis is still around, with those markets open when this became clear in the red up to 2.25% and US stock markets lower by 1.5%. European markets are expected to go down the same route when opening this morning, with the Footsie futures market indicating an opening loss of around 120 points or near 2%.

Markets hate uncertainty and until the situation is clarified as to who is going to preside over the hugely unpopular austerity programme in Italy, global equity markets will remain weak and may well obsess with eurozone economics once again and not in a good way.