Forex Flash: Markets welcome end to short term Italian political deadlock - BTMU

FXstreet.com (Barcelona) - Lee Hardman, FX analyst at the Bank of Tokyo Mitsubishi UFJ notes that financial markets in the euro-zone are initially welcoming an end to political deadlock in Italy at least in the near-term with Giorgio Napolitano winning approval to be reappointed President at the sixth attempt gaining 738 votes out of 1007.

He writes, “He won support from the PD, PDL, the Northern League, and Monti’s party providing the first evidence that viable political co-operation exists. President Napolitano is expected to soon try to form a technocratic government with twice prime minster Amato likely nominated to lead. The Presidential vote split the PD party with leader Bersani resigning. The main beneficiaries are likely to be Berlusconi’s PDL party and the Five Star Movement if a potential technocratic government proves short-lived.”