FX.co ★ Italy’s elections slumped European markets

During trading session on February 26, Italy’s FTSE MIB lost 5% to 15540 points. As of 13:30 (GMT+4) it shed 4% to 15690.
Other European markets have also slipped into the red zone. Thus, UK’s FTSE 100 decreased 1.4%, Germany’s DAX edged down 2%, France’s CAC dropped 2.13%, and Spain’s IBEX shed 2.64%.
The Russian indices demonstrate similar dynamics. MICEX and RTS lost 1.1% and 2.25% correspondingly.
The indicators are falling amid speculations about the results of the elections to the Italian parliament. According to preliminary data, the centre-left coalition ruled by Pier Luigi Bersani takes the leading position with 31.6% of votes.
The second position went to the centre-right coalition headed by Silvio Berlusconi - they have received 30.66% of votes. They are the second in the Senate as well, however, taking into account the regional elections, the political block can get 116 seats in the upper house while Bersani’s block - 113 seats.
Investors think that no coalition can earn the majority of the votes which can re-ignite the eurozone debt crisis. As the result, the single block’s third economy can fail to fight against economic turmoil effectively.