Italy’s benchmark equity index has reached its lowest level since September as nerves build ahead of the country’s referendum on constitution reform in less than two weeks’ time.The FTSE MIB index is losing 1.18 per cent at publication time to 16,073.85, underperforming its peers in Europe.
- The pan-European FTSE Eurofirst 300 index is off 0.58 per cent.
- The FTSE 100 in London is 0.18 per cent lower.
- The CAC-40 is down 0.37 per cent and
- Germany’s Xetra Dax is losing 0.44 per cent.
Italian prime minister Matteo Renzi has staked his political future on the referendum on December 4 but recent opinion polls have indicated an average 5-8 point lead for the “no” vote.
As the FT’s James Politi reports, a loss for the prime minister could also spell the end of the centre-left PM’s political and economic reform programme, fuelling concerns that it could lead to a loss of investor confidence in the eurozone’s third biggest economy.
Italy’s economic recovery has faltered this year with the country failing to grow in the second quarter. It eked out GDP growth of 0.3 per cent in the most recent three month period, ending in September.
Chart from Bloomberg