How worried should investors be about Italian referendum fallout?

Investors are taking a cautious approach to the upcoming Italian referendum on constitutional reform, but say the market consequences of the vote will not be as serious as the Brexit vote or US election, whatever the outcome.

On Sunday 4 December, Italy will take to the polls and either vote 'yes' - in favour of the existing commitment to reform by Prime Minister Matteo Renzi (pictured), or 'no' - which could trigger a period of political uncertainty, the potential for snap elections to be called, and provide an entry point for populist parties. Renzi has stated he will step down as PM in the event of a 'no' victory. But while the political implications could prove severe and cause issues for the stability of Europe ahead of a number of elections in 2017, some investors believe the market fall-out from the...