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Published on Dec 5, 2016
GKFX
analyst James Hughes highlights that the markets “absolutely hate”
uncertainty, but noted that Matteo Renzi’s almost immediate resignation
has seen some stability come back into financial markets.
“We had the initial sell off when the initial results came through that the No vote was going to win … but as he [Renzi] confirmed he is going to leave, that adds a bit of stability back into the market,” Hughes said in a Proactive Investors’ Stocktube interview.
“The fact that he didn’t leave anyone waiting and he straightaway made his decision and went by it, that meant markets rallied.
“Now, whether you expected them to rally as they have done, that’s another question entirely.”
He adds that it has been a “huge, huge rally’ from the lows seen first thing this morning.
Hughes explains though that there are longer term uncertainties surrounding Italy and its future participation in Europe.
“The Italian referendum has huge implications not just for Italy but also for Eurozone as well … it paves the way for more elections which continues with the populist movement which is happening not just in Europe but throughout the world.”
“We had the initial sell off when the initial results came through that the No vote was going to win … but as he [Renzi] confirmed he is going to leave, that adds a bit of stability back into the market,” Hughes said in a Proactive Investors’ Stocktube interview.
“The fact that he didn’t leave anyone waiting and he straightaway made his decision and went by it, that meant markets rallied.
“Now, whether you expected them to rally as they have done, that’s another question entirely.”
He adds that it has been a “huge, huge rally’ from the lows seen first thing this morning.
Hughes explains though that there are longer term uncertainties surrounding Italy and its future participation in Europe.
“The Italian referendum has huge implications not just for Italy but also for Eurozone as well … it paves the way for more elections which continues with the populist movement which is happening not just in Europe but throughout the world.”
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