Economic calendar: Italian politics in focus

Summary

- Crucial day for the Italian politics
- Will DOE report confirm massive drop hinted by API yesterday?
- Q&A session to follow speeches of two Fed members

3:30 pm BST - DOE report on oil inventories. Oil prices surged yesterday afternoon following remarks from the Russian Energy Minister. Politician reiterated that his country remains committed to the OPEC+ production cuts. Moreover, API report showed a massive 11.1 million barrel drop in crude inventories. Today’s DOE report is expected to show a drop of 2.1 million barrels but one should be wary that consensus was determined prior to yesterday’s release therefore the scope for a beat is high.

Italian politics

Talks held over the past days between Democratic Party and the Five Star Movement were inconclusive. President Sergio Mattarella is said to give the two parties last chance to find an agreement today. In case they fail to reach a compromise, the most likely outcome is snap elections. Matteo Salvini’s League is still leading in polls with 33% support but has lost some ground recently to the benefit of the Five Star Movement. Traders with exposure to the Italian assets should watch today’s newsflow closely for any hints on what will the near future look like.

Central bankers’ speeches

- 5:20 pm BST - Fed’s Barkin
- 10:30 pm BST - Fed’s Daly