The biggest qualm is the trade war escalating and this is haunting the markets. It is arduous to find bulls in the market and it seems to me that this game is about to become uglier.
There is some optimism in the market as the talks between the U.S. and China have begun once again ahead of the upcoming G20 meeting. Once again the hopes are that both countries would be able to strike a deal and put the woes of trade war behind them.
Italians are simply not ready to bow to the EU like the Greeks did. Looking back at the situation, even Greece did put up a big fight before submitting to the EU’s will. The European Commission wants the Italian government to bootstrap its expenses and start paying respect to the fiscal rules. However, the Italian government is of the mind frame that we do not need to dictated by the EU.