Deutsche Bank: Italian Referendum May Leave Investors Scratching Their Heads

There are two potential market paths following Sunday’s Italian referendum vote, a Deutsche Bank research report notes. Either path is likely to generate market volatility, either upside or downside deviation. In particular, Italian bank stocks could be at the center of the action. But even if a surprise "Yes" vote was to occur, the much discussed Italian bank bailout isn't a sure thing.

Italian referendum vote - The Italian banking sector has the most at stake in referendum

The most significant short-term downside risk to a “No” vote in the Italian referendum can be seen in the banking sector.

As previously pointed...