Italian stocks had a monster day yesterday (gaining over 2%) and they’re surging again today (up over 1.3%) despite the fact that for the most part, markets are weak around the world.
The reason is that the threat from Silvio Berlusconi’s party (the PDL) to topple the government of Enrico Letta, has failed. Enough of PDL’s own members of government are supporting the existing coalition, so that the government isn’t collapsing. Over the weekend and on Monday it had appeared as though this might be a risk.
Here’s the intraday chart of Italy’s FTSE MIB stock market index.