Italy’s FTSE MIB index is up 2.3% with the bulk of the gains coming in the last 30 minutes as headlines cross indicating that Berlusconi is losing influence in his party.
The euro isn’t playing along so far but, to be fair, it wasn’t overly concerned when the headlines were negative. The Italian bond market is the tell, it hasn’t punished Italy too harshly in the latest circus and 10-year yields are safely under 5%.