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Stocks are reacting to an Italian coalition government being named.
Ending two months of political uncertainty there an Italian bond auction of five and ten year bonds came -- with the lowest -- in three years there's also optimism.
On -- hopes that the European Central Bank will either low it's lower interest rates or expand financial support for the eurozone.
At its meeting on Thursday stocks in the Europe are currently makes you got London down very slightly Paris is -- -- point five Frankfurt's up almost sixteen.
Let's take a closer look now how what's moving those markets -- Jane Foley senior currency strategist at rabobank in London.
Jane -- -- reaction both the equity and bond markets Italy's prime minister.
Getting a government in place there what's the next step now.
Politically it's everywhere now is that questioning whether or not this government would really be able to -- -- cool -- inclusive and have a good history.
After not going to view but a close one thing -- he might want to do one thing that could be successful.
Is an electoral reform.
How is his recordings about a many people in ATP have been -- -- -- for a long time.
And at least if electoral reform was put in place than any government that might -- at this one.
Would have a better chance of of stay in the course and then following through with structural reforms that that perhaps is number one.
On the agenda.
And markets are also getting a boost from optimism about this possible interest rate cut later this week from the ECB what are the chances.
Of that happening and if it does have they do you think it'll be.
Well there is that a consensus now in favor -- this insignificant minority expecting unchanged rates FactSet.
At this morning we have the latest round of back at confidence indicators in the US and industrial confidence consumer confidence at -- spectacle -- -- Or -- it's been weaker than expected and that would set -- -- seem to build a child says all the right cat -- Given that -- got to be close to the floor.
At perhaps -- 25 basis points is what we can realistically.
Right Jane Foley over rabobank we appreciated Jane thank.
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