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The vast majority of retail client accounts lose money when trading CFDs.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Italian Stocks Are Under Pressure From Election Results

The benchmark Italian stock index looks like it may fall further on the weekly chart after the country installed its first far-right leader in decades.

The election result also rattled European officials in Brussels, with EU Commission President, Ursula Von Der Leyen, saying that the EU has "the tools" to deal with member states if things "go in a difficult direction."

That comment angered the Polish Prime Minister, Mateusz Morawiecki, who called the comments "scandalous."

Is this the Europe we want?... That Eurocrats in Brussels dictate what the government should be. " Morawiecki said.

Weekly ITA40 Chart

ita40 chart

However, politics aside, the election result could make for a tense relationship between the country and the EU. That will not be lost on investors, while other investment firms may try to distance themselves from the country.

The ITA40 index is trading at 21,182, but there may be an imminent move to the 20,000 level. That would be the test for deeper losses in Italian stocks.

Italians overwhelmingly voted for Georgia Meloni and her Brothers of Italy party. They will be supported by coalition partners Matteo Salvini and Silvio Berlusconi. Financial markets were not phased on Monday, with the ITA40 outperforming other markets, but it may be short-lived. Analysts said a clear victory would give the country the chance of a stable government for a full five-year term, which has been rare in Italian politics in recent years. Some comments from Meloni have also suggested that she will not rush into any confrontation with the EU over its economic and budgetary policies.

Despite that, the country’s huge national debt, low growth, and a dangerous global market backdrop leave the new and inexperienced at risk. ING economist Paolo Pizzoli said the result provided "enough votes for the right-wing coalition to ensure stability but not too much so it can change the constitution with a two-thirds majority."

In the end, large financial investors will have their say on the direction of Italian stocks.

Last Updated: 27/09/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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