Some late news from after hours in the US Friday, on Italian sovereign debt ratings from Fitch.
- Fitch affirmed Italy's credit rating unchanged at BBB
- maintained its negative outlook
Fitch:
- This week's political developments reinforce our assessment at the previous review that the government was unlikely to see out a full term and there is an increasing risk of an early election from the second half of this year
- There are downside risks to the fiscal outlook should a future government opt to disengage from EU fiscal rules and be more willing to risk financial market instability
That's a bit of respite for Italy as political instability rises, with the likelihood of early elections soon. Prime Minister Giuseppe Conte is facing a no-confidence motion in Parliament from coalition member Matteo Salvini. Italian instability is a negative for the euro, this lifting it at least to some extent.
Salvini:
