Italy

Italy's embattled economy contracted 2.8% year on year in the fourth quarter, according to the final reading released this morning, worse than the 2.7% contraction previously thought.

ITALY

The result of Italy's presidential election shocked markets last week and sparked renewed volatility, with none of the four competing political parties emerging victorious, but what does it mean for investors now?

Europe's leading equity markets took a beating yesterday as elections in Italy resulted in political deadlock.

European bond and stock markets saw a sharp sell-off on Monday after a shock result from the Italian election, where no political group managed to win a majority vote.

COMMENT

Leading fixed income managers have been adding exposure to peripheral eurozone bonds as value dries up in the investment grade corporate space.

The SWIP Absolute Return Bond fund received a significant boost in Q4 from exposure to the European periphery, such as Italy and Spain.

M&G's Mike Riddell has sold out of his position in 5- and 7-year Italian government bonds ahead of a possible sell-off following the country's general election.

The decision by Mario Monti to stand down as Italian Prime Minister earlier than planned has caused markets to fall across Europe today, and led to a spike in Italian bond yields.