A quick glance at the soaring Italian stock market and one would have faith in the future of the euro, with Alitalia just a ‘storm in a teacup’. However, bond traders are as worried about political uncertainty as ever with Italian bond risk surging to over 3 year highs.
As Bloomberg reports, the FTSE MIB Index is trading near a 15-month high after ex-Prime Minister Matteo Renzi resoundingly won back the leadership of the Democratic Party.