Italian Politics Heat Up as PM Might Be Ousted

After just nine months in charge of Italy’s fragile grand coalition government, Enrico Letta looks set to be ousted by his Democratic Party (PD) colleague Matteo Renzi.
With investors preferring stability to uncertainty, markets sold off on Thursday as the political turmoil unfolded, accentuating a wider “risk-off” move across European bourses. The FTSE MIB Index was down around 1.3 percent in afternoon trade, but pared some losses after a relatively successful bond auction by the Italian treasury.

But market watchers are now watching afternoon events in Rome, with the party gathering to vote on Letta’s economic reforms. It could also decide whether the largest party in the coalition will continue to back the prime minister amid widespread speculation that Renzi will push for the party to withdraw its support for Letta.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza