020 7898 0500Although there was no single party that emerged as the victor, the Italian election results have served as a reminder that the eurozone crisis continues. That more than 50% of voters ticked a populist box is not great news for those that straddle the mainstream and is perhaps symptomatic of a world that is becoming tired of the way things are. Of course, that is not to say that the chosen alternatives are better, but the Italian public have clearly made their unrest known.
Many are predicting that the centre-right parties will form a coalition which would mean Matteo Salvini or the right-wing Northern League will have a significant role. His platform was built on anti-immigration, pro-Russian and anti-EU sentiments which could cause some unrest across the eurozone.
As for economic data, the eurozone services and composite PMI came in below expectations at 56.2 and 57.1 respectively. Still, the figures still show impressive growth. In Germany, services PMI came in as expected at 55.3, while composite hit 57.6 against an expectation of 57.4. January’s reading of 59 was the highest for 81 months. Year-on-year, retail sales increased by 2.3% in January 2018 which was better than the 2.1% expected.
Today we will see German construction PMI and the eurozone’s retail PMI.
