European large-cap ETFs saw outflows last month as Italy's political situation reached breaking point, casting doubt over whether the European Central Bank will end its three-year bond-buying programme in Q3.
According to data from TrackInsight, the asset class witnessed outflows for a third month in a row, amounting to €4.5bn in May as European markets suffered amid the political turmoil in Italy. Towards the end of May President Sergio Mattarella rejected the Five Star Movement and Lega's candidate for finance minister Paolo Savona, prompting Prime Minister Giussepe Conte to resign. At the start of June however, the two parties withdrew the choice of Savona meaning Conte was able to return as prime minister and the two parties could form a government. This has brought into question wh...
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