Markets Weather Italy Referendum Result, but Banks Are Vulnerable
ByFinancial markets were stoic on Monday after Italian voters decisively rejected changes to their country’s Constitution intended to speed government decision-making and spur Italy’s stagnant economy.
Stocks in Europe and the United States rose, and the euro recovered from early losses — a reaction that was muted in part because opinion polls had predicted the “no” vote, giving investors time to adjust their portfolios, and also because political instability in Rome is not exactly unusual.
But analysts said the potential for market turmoil remained if the vote resulted in a long period of government paralysis and delayed plans to fix Italy’s ailing banks, whose shares fell sharply on Monday…
Markets Weather Italy Referendum Result, but Banks Are Vulnerable
