The attack in Nice, France has prick the latest equity bubble in early trading in Europe, according to media reports.
While the attack is horrific, I can’t say that financial firms or institutional investors have that on their mind.
I believe the driver behind the moves Friday is the Italian banks, which have been limping along for the last three weeks since just prior to the Brexit.
Italy is still looking for a way to end run the EU and bail out its banks. The leadership has had discussions with China, and Germany’s Angela Merkel squashed that move.
There’s an Italian election coming up with Luigi Di Maio leading in the polls. Di Maio’s political party has a stance on having a referendum on voting to leave the EU and euro.
The “Italeave” movement is gaining strength as Italians fear they will be treated like the Greeks with bail ins and haircuts on their savings accounts.
This movement is sending tremors through the EU, since Italy is the third-largest economy in the EU.