On Tuesday, the DPRK made progress towards a ruling coalition, which encouraged financial markets and President Trump. Trump said he hoped Konte would be reinstated as prime minister.
Comte's role has always been a crux of negotiations between the Five-Star Movement and the Democratic Party. The Democratic Party opposes Konter's reinstatement.
Roller-coaster talks between the two parties suffered setbacks early Tuesday, but later appeared to be back on track, with optimistic rhetoric from both parties triggering a strong rebound in financial markets.
The yield on Italian 10-year bonds fell to a three-year low, narrowing to less than 182 basis points, the narrowest level since May 2018.
However, the atmosphere is still tense and unexpected changes may occur.
Investors, however, are betting that Italy will avoid early elections, fearing that if it does, Salvini's right-wing coalition party may win, which will lead to a fierce conflict between Italy and the European Union over expansionary government spending policies.
The two parties will return the results of the negotiations to President Matarella from Wednesday's 1400 GMT. If no agreement is reached, Matarella will appoint a caretaker government and announce elections.
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