London — Italian shares rose on Monday as investors bet against an immediate snap election in Italy following Prime Minister Matteo Renzi’s resignation after defeat in a constitutional reform referendum. Markets had been jolted by the scale of Renzi’s defeat, which pointed to further turbulence and political crisis in the eurozone’s heavily indebted third-largest economy and particular uncertainty was focused on the country’s fragile banks. The euro fell as low as $1.0508 and the Milan bourse shed as much as 2% at the opening, while Italian bond yields spiked sharply higher. But most of these moves quickly reversed. The euro roared back above $1.06, still down on the day, Italian stocks moved higher, and Germany’s DAX and Europe’s FTSEuroFirst index of leading 300 shares both rose 1.5%. US futures pointed to a rise of about 0.5% at the open on Wall Street. "Our base scenario is a caretaker government which could be in place before Christmas, and no new elections before 2018," Indosu...
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