Analysis-Growing Italy risk puts equities at deepest discount in 35 years

Italian stocks are trading at their deepest discount in 35 years compared to world shares as investors fret over the fiscal outlook in one of Europe's most indebted economies, although some reckon the shares are too cheap to ignore. Yes, Milan's blue-chip index has rallied this year as it is geared heavily towards banking stocks that have benefited from the steepest rise in euro area interest rates on record. But domestically focused companies in sectors such as consumers and industrials have been hurt by an aging population, debt at over 100% of GDP and two decades of near-zero economic growth that was only briefly interrupted by a post-COVID rebound.