With Italy's history of more than 50 different governments since World War II, it's hard to believe that a government with such a tight majority will have the mandate to implement the structural reforms demanded by the rating agencies.
This is a warning that sentiment developments aren't a one-way street, and we may have reached a peak. With the help of ZEW, prices should find a floor and shouldn't drop in the very short term.
This is a warning that sentiment developments aren't a one- way street, and we may have reached a peak. With the help of ZEW, prices should find a floor and shouldn't drop in the very short term.
The central bank is very likely to send a stronger message that rates are going up in the near future, because the economic outlook is getting brighter. This will put downward pressure on the bond market.