CMC Markets: A 'No' vote? Italian banks become biggest fallers


The Italian referendum will be held tomorrow. According to CMC Markets, a 'No' vote may imply Italian banks become biggest fallers. Explore what are other expectations of CMC Markets.

3 December, AtoZForex – Markets are now focused on the outcome of Italy's referendum, which is to occur this Sunday. Political uncertainty prevails around the event, as Prime Minister Matteo Renzi vowed to step down in case of a 'No' vote. In order to be aware of the effect Italy's referendum results may have on markets, AtoZForex’s readers have requested information related to retail Forex brokers' outlook ahead of the vote. Therefore, we have contacted

Therefore, we have contacted CMC Markets to obtain their opinion on Italy’s referendum. Below are the comments provided by Jasper Lawler, Market Analyst at CMC Markets. Along with the precautionary measures Brokers introduce.

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CMC Markets risk-averse actions and expectations 

We offer a range of risk management tools such as our standard stop-loss orders, trailing stop-loss orders and Guaranteed Stop-Loss orders. More information can be found at https://www.cmcmarkets.com/en-gb/platform/order-execution.

A ‘Yes’ vote – low turnout of Italians will vote for a change/reform. It won’t be a populist revolt like Brexit or The Donald. Furthermore,  a ‘No’ vote would be euro-bearish, a ‘yes’ vote euro-bullish.

Monday market opening: Italian banks become biggest fallers

European stocks should open significantly higher on a "surprise" yes vote. Italian banks will be biggest fallers on a 'No' vote.

ECB is likely to extend its asset purchase program whichever way the vote goes. Paradoxically, a lower euro after a 'No' vote would make it easier for the ECB to reach its inflation target because of higher import prices.

CMC Markets' recommendation for traders 

Traders should take extra precautions in terms of risk management to allow for greater potential volatility.

Referring to the communication lines, CMC Markets' Customer Services team is available whenever the markets are open – in the UK you can email us (clientmanagement@cmcmarkets.com) or call +44 (0)20 3003 8588.

Do you have questions related to CMC Markets' outlook on the Italy referendum result? Let us know in the comments section below.

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