The uncertainty surrounding the Italian election result has upset investors around the globe, not least in emerging markets. While Beppe Grillo, the comedian whose movement won 25 per cent of the vote, may be laughing, fund managers are not.
Following losses on Wall Street, the MSCI Asia ex-Japan index fell 1.2 per cent on Tuesday. Closer to Rome, the impact was bigger, with the MSCI East Europe index down 1.9 per cent in early trading. Watch out for a nervous day.