Eurozone: Resiliency of the status quo on display - BBH

Analysts at BBH suggest that the resiliency of the status quo is again on display in the Eurozone as after much chin wagging and finger pointing after the Italian elections and the modest decline in Italian assets, they have bounced back today.  

Key Quotes

“Italian bonds and stocks are participating in today's advance.  Italian equities were off 0.5% yesterday and are up a 1.1% near midday in Milan.  Italy's 10-year yield rose three basis points yesterday is off five today.”

“It is true that in these early hours after the election, in which the center parties lost handily, the new government is hard to envision.  There does seem to be a lot of posturing.  However, recall that in September, German SPD leader Schulz ruled out another grand coalition.  This past weekend, the SPD approved it, though without Schulz.  Renzi offered to resign as leader of the PD, but only apparently after a new government is formed and the PD is not part of it.”