And Maybe Another One

Early, still inconclusive, results from Italy's 2-day election for another government in Rome (the 64th since 1945)  are indicating what world financial markets, and Germany and the European Commission,  did not want - no clear mandate.

Voting has been split multiple ways (as it most often is in Italian elections), this time between Mr. Bersani (the apparent favorite), Mr. Berlusconi and Mr. Grillo ( both of whom seem to have surged in popularity in the two weeks prior to voting), and incumbent Mr. Monti ( who appears to have done much worse than expected). But none of these principal political players' parties seems to have garnered enough electorate support to effectively step forward and propose to Italy's President that it form a new government, in coalition with another party. Gridlock and uncertainty prevail,  and yet another election may be required.   ​

Markets deplore this outcome. They are hanging in the balance (Italy is the world's 3rd-largest debtor, after Japan and America). The euro was under pressure today;  America's equity markets plummeted late this afternoon on the "uncertainty" news. The CBOE volatility index spiked, and America's "safe-haven" treasury-bond markets rallied.

Watch for additional election results forthcoming tonight and tomorrow, which may well confirm uncertainty.