Italian equities are stumbling amid political upheaval by populists
An Italian flag flies in Rome. Credit: Dmitry Dzhus
Investors in Italian stocks who have been craving market stability after the political upheaval in Rome during the last 2 weeks are sure to be disappointed further, now that the man who was pipped to become Prime Minister has had his credentials brought into question, prompting yet more volatility.
Giuseppe Conte was nominated as a candidate to be Prime Minister by the leaders of Italy’s key populist parties, the League and the 5-Star Movement, headed by Matteo Salvini and Luigi Di Maio, who won stunning victories in the recent Italian elections.
However today Conte’s background is being heavily scrutinised, as he faces accusations he lied on his CV about his academic qualifications. The suspicions of foul play by Conte have put another spanner in the works of efforts to form a government in Rome. As a professor who teaches law in Florence and Rome, Conte is an unknown entity in Italian political circles, which was another reason why his nomination has been met with skepticism.
More broadly, fears from investors about what a populist government could mean for the Italian economy have kept Italian stock indices under heavy pressure.
The Cboe Italy 40 index fell 5.14% for the week early Wednesday (see below), representing a significant dip. However, the index could recover some lost ground when a Prime Minister is finally decided upon, so investors looking to trade the political saga should keep an eye on the story!
Want to learn more about the markets and how to become a better investor?
Download the Invstr App now.
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.