Markets volatility can be expected and worry about Italy's budget

Global markets suffered a terrible week with Nikkei falling 5.98% and US shed 2.97%. Dow Jones had erased all gains of the year. US stocks led the sell off as investors were not happy about corporates’ future profit projection. It in turn upset global markets. In addition, markets were worried about the US mid term election. Whether Trump will win or Democrats can dominate the future Senate, all these to a certain extent harnessed investors risk appetite. On the other hand, the uncertainty surrounding Brexit negotiation outcome and Italy’s defiance of EU’s budget refusal didn’t help the markets at all. We have invited independent economic analyst and strategist, Dr Po man Chan to analyze the likely scenario should Italy refuse to compromise with EU over budget arrangement.

Borsa Italiana, italian stock exchange, in Piazza Affari, Milan, Italy Source: iStockphoto