The ambivalent result on the Italian elections strokes the markets. An old emperor, a clown and a former communist have to reorient the Italian policy after the Mario Monti’s period. Spain shares the pain.
The center-left coalition leader, Pier Luigi Bersani, appeared yesterday as the winner of the Italian election circus. A narrow victory in the lower house of parliament, gives him the possibility to control the new Italy without technocrats. But is not going to be that easy. The former Italian premier Silvio Berlusconi obtained the victory on the Senate and makes more difficult the governability on the boot’s country. In addition, the comedian Beppe Grillo achieved an amazing result with the new creation party Five Star Movement.
The Spanish market
As an excellent member of the PIGS (Portugal, Ireland, Greece and Spain) club, Spain receives any wave of instability from his own brothers in the economic crisis. After some quiet days on the markets, the IBEX35 closed 3,2% down and saying good bye to the 8.000 points. Besides, the Spanish spread ratcheted up 30 points to 391 (the top was 413). The results also affected other markets like German’s DAX or CAC-40 in France, which felt a 2.3 percent.
Jordi Giner Coté