The election result – and the resulting political fallout – could affect a wide range of markets, including:
Indices and shares
The FTSE MIB (Italy 40 on the IG platform) fell 1.5% in opening trading on the Monday after the election. Many of its constituent companies are highly exposed to the Italian economy, so it is likely to feel the effects of political uncertainty and a lack of government stimulus in the coming weeks.
If the euro falls, banks and financial services firms such as Banca Monte dei Paschi di Siena and UniCredit could struggle, but net exporters like the pharmaceutical companies may benefit.
Remember, the DAX, CAC 40 and FTSE 100 were all up in the immediate aftermath of the ‘no’ vote in the Italian referendum of 2016, suggesting they could be beneficiaries of any political turmoil in Italy.