Scanning some of the overnight notes and this via ING in italy
Democratic Party (PD) and the Five Star Movement are very close to agreeing on a coalition pact to form a new majority in Italy.
- still a few points to clarify
- some caution may be warranted given the risk of a last-minute turnaround by either of the two parties
- the new coalition is likely good news for Eurozone sentiment, as it pushes away the risk of snap elections and possibly flags a more accommodative stance when it comes to relationships with the EU (the PD is a pro-EU party)
Nothing ground breaking in the view from ING but it is a useful reminder of what to watch in Italy.
Overnight reports had talks 'stumbling' and then restarting.
Latest appears to be talks to continue Wednesday.
Nothing set as yet.
