The current crisis in Rome has the potential to destabilize the country`s already shaky banking system. But when Renzi announced he would resign as a consequence of the outcome of the referendum, the eurozone`s single currency pared much of its earlier losses, dipping only around 1 percent against the greenback on Monday morning.
No market shock was witnessed in Asia either, with the Nikkei 225 in Tokyo dropping by only 0.82 percent. Logically, some of the Asian nation`s lenders were among the biggest losers, including Mitsubishi UFJ.
Relaxed markets
A look at the futures indicated that European stock indices would shed only around half a percentage point at the start of trading on Monday.
German economists have made no attempt to portray Sunday`s developments in Italy as the end of the world.
"I`d not speak of a euro crisis today," VP Bank Chief Economist Thomas Gitzel told Reuters. "Italy is likely to pick a government of technocrats as a result of the referendum; and that doesn`t have to be bad at all as such governments have oftentimes achieved more in Europe than regular governments."
The chief economist of Commerzbank, Jörg Krämer, also refused to speak of a major crisis. But he warned that everything needed to be done to prevent a return to a policy of public debt accumulation in Italy, arguing that more debt could "prompt investors to turn their backs on the nation."
More about:
