With concerns that Italy may proceed with early elections as soon as January or February of 2017 slamming the Euro in early trading, which taking place so soon to the Renzi referendum would likely assure anti-establishment forces a victory (whether or not they can form a coalition cabinet is a different topic), moments ago Reuters reported that Italy's constitutional court said it would hold a hearing on the legitimacy of a new electoral law on Jan. 24, in a case which has major implications for when parliamentary elections might be held, and if reaching a quick verdict would greenlight an early 2017 vote.
From Reuters:
It is not clear when the court will make a definitive ruling on the disputed law, which only relates to the lower house of parliament and is known as the Italicum.
Prime Minister Matteo Renzi is due to resign this week after losing a referendum on Sunday over constitutional reform. Many politicians are pushing for early elections, but Italy's president will almost certainly hold off on any such decision until there is clarity over the status of the Italicum.
While the news of an early election, at least relative to expectations is hardly bullish for Italy, for the time being Italian banks are unconcerned and have soared in Milan afternoon trading, rising over 5%, with even Monte Paschi suddenly surging after being unhalted.