Italian Markets Jump After League Vows to Respect Budget Rule

League leader Salvini seeks deficit of up to 2%: La Stampa
Government may avoid confrontation with investors: Citigroup

Goldman Sachs Economist Huw Pill discusses Italy’s 2019 budget discussions and the prospects for new elections.Source: Bloomberg

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By Carolynn Look

September 4, 2018 at 7:30 AM UTC

Updated on

September 4, 2018 at 2:40 PM UTC

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Italy’s markets extended a rally following conciliatory language on the country’s budget plans.

Yields on 10-year bonds dropped the most since June and stocks led regional gains. Italian leaders from the government coalition partner League began discussing the 2019 budget Tuesday, and agreed to respect European Union deficit rules, according to Ansa, echoing a pledge made earlier by Deputy Prime Minister Matteo Salvini.