Overnight, markets have become obsessed with Europe's next big problem: Italian banks
Business Insider
Published Jul 05, 2016 09:19AM ET
Updated Jul 05, 2016 10:24AM ET
After a long weekend in the US and (DE:DBKGn) wrote in a note to clients that Italy posed the biggest risk to markets despite the fact that at that time the market was looking past issues in Italy as the Brexit vote loomed. And over the weekend, analysts at Citi also took this view, writing:
"Outside of the UK, the next major political event may be a referendum in Italy on Senate reform, as PM Renzi’s political future may be tied to the outcome of the referendum. It raises the risk of Renzi-exit at a time when the upstart 5-Star Movement are riding high in the polls and with Italy having among the highest levels of Eurosceptic sentiment."
Following the June 23 Brexit vote, markets have been unsettled but, all things considered, the reaction has not been as dramatic (save for the first 24 hours) as some might have predicted.
But as we've moved past the initial shock and the early stages of digesting how Brexit could impact markets in Europe and around the world, it seems that in Italy markets have found their first knock-on impact to worry about.
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Written By: Business Insider
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