Italian Parliament is treading on deep waters as the unofficial results of Sunday’s exit polls hint towards a hung parliament. As was expected none of the parties seem to have acquired enough votes to form a single ruling party. The young Five-Star Movement has apparently secured the maximum number of votes, as earned by a single party but definitely not enough to form the ruling party. The center-right bloc, which is the alliance of populist Forza Italia and Lega Nord, is currently leading with 248-268 seats out of the 316 seats needed for a majority, which accounts for almost 33-36%.
In the currency markets, the euro was fairly stable against the dollar after the exit poll. After some brief volatility, the single currency was trading higher by around 0.2 percent before the poll and had held onto those gains an hour later. This election is being closely watched by investors globally, as it could lead to the establishment of a Eurosceptic, anti-immigration government in the third largest economy of Europe.