After a year of huge shocks to the market, investors' nerves will be tested twice more in the coming week as OPEC debates an oil output cut and Italy provides the first of several upcoming major European electoral tests. Ciara Lee reports.
Investor nerves are expected to be tested this week. First up, OPEC meet in Vienna to debate and oil output cut. After agreeing two months ago to limit supply, producers will be hoping to finalise details of a cap on production. But doubts remain over whether a consensus will be reached, the deal hinging on agreement from Iraq and Iran. But it's Italy that's expected to cause the real jitters, providing the first of several upcoming European electoral tests. Investors fear Italy could be plunged into uncertainty if pro-euro Prime Minister Matteo Renzi fails to pass his constitutional referendum on December 4th. (SOUNDBITE) (ENGLISH) HEAD OF GLOBAL EQUITIES AT HENDERSON GLOBAL INVESTORS, MATTHEW BEESLEY, SAYING: "It's hard to see how anything other than politics can dominate the markets for the next three weeks. Obviously we have the Italian referendum, but then investors will very quickly turn their attention to what's going to happen in France in early 2017, and then indeed Germany in the Autumn as well. And of course president-elect Donald Trump will be sworn in at the end of January. And quite what that means for U.S. politics, it's very easy to see investors stay fixated on politics." Renzi has said he will resign if he loses the vote. This might open the door to the opposition 5-Star Movement, which has denounced the single currency. The risk of instability returning to Italy, the euro zone's third-largest economy, has led to the ECB saying it would react to any "economic shock" from the vote. The successes of Donald Trump and Brexit may first be repeated in Austria's presidential run-off though, also on December 4th. That could see Norbert Hofer become the European Union's first far-right head of state.