Italy is gearing up for a potential snap election after Prime Minister Giuseppe Conte tendered his resignation on Tuesday. Matteo Salvini is seeking support within the Senate to form a government, but is generally acknowledged to be hoping instead for an election, if no government can be formed. His party, the Five-Star Movement, is currently polling much ahead of the share they hold in the Senate, so to do so could be very advantageous for him.
However, this will only raise worries about an increasingly risky economic approach from Italy’s government, with Salvini pushing for an expansionist budget that Brussels has previously warned against.
Manufacturing figures for August came in slightly higher than expected for the eurozone and Germany. While this improvement is, relatively speaking, good news, the stats are still in the negative and remain in contraction territory. Manufacturing figures for France rose to 51.0 in August from 49.7 in the previous month and were above market expectations of 49.5.
The euro has found some strength against the dollar and pound this morning. However, it could be affected by results of the ECB’s monthly meeting later today, and then consumer flash confidence for the eurozone, which is expected to show a further decline.
