Long hot summer awaits Italy and eurozone ahead of polls

London

It is going to be a long hot summer for the eurozone ahead of expected Italian elections in coming months.

On Wednesday the euro and Italian stocks and bonds staged a brief rally. But with continual uncertainty over Italian politics and Brexit negotiations, investors are likely to shun European markets for the time being.

The yield on 10-year Italian bonds, which had jumped from early May lows of 1.6 per cent to 3.2 per cent, fell slightly. The stock ma…