Politically-driven volatility to emerge in coming weeks? - ANZ

Analysts at ANZ explained that Italy’s inconclusive election results are in and now the waiting game starts. 

Key Quotes:

"There are certainly a number of permutations that could transpire. The first focus is likely to be if a centre-right coalition (c 37% of the vote) can form a government, although that would still leave the potential for the populist La Lega leader Matteo Salvini to be PM."

"The shock for the EU would be if the Eurosceptic Five Star Movement (M5S) led by Luigi di Maio and La Lega formed a coalition. No government is possible without either the support of M5S or La Lega and both are arguing they have a right and duty to govern. There is clearly potential for some politically-driven volatility to emerge in coming weeks."