Most markets are pretty uneventful this morning, but
The Milan market is down about 1.1%.
FTSE MIB
The government continues to be in a state of chaos following the elections in late February, which failed to produce a winner.
Meanwhile, Pier Luigi Bersani -- the head of the center left party who has had the best shot of forming a government -- is sounding very downbeat.
Italy's Bersani: Country Is In a Mess, Has Difficult Year Ahead
— DJ FX Trader (@djfxtrader) March 27, 2013
Italy's Bersani Rules Out Grand Coalition deal for New Government
— DJ FX Trader (@djfxtrader) March 27, 2013
*Italy's Bersani: Only an Insane Person Would Want to Govern Now
— DJ FX Trader (@djfxtrader) March 27, 2013
Analysts are sounding the alarm.
Italian political uncertainty could last months. JPM expects new elections later this year - probably September - or maybe even early 2014.
— Jamie McGeever (@ReutersJamie) March 27, 2013
Bottom line, Europe is unstable, and (Cyprus excepted) Italy is the most concerning spot at the moment, so its market is set to underperform.