It’s a big morning in Europe, where Austrians have “roundly rejected” a candidate who would have become the first freely-elected far-right president in Europe since the Second World War. Meanwhile, one of our most important trading partners is looking for a new prime minister: Italian PM Matteo Renzi has resigned. With nearly all precincts reporting, the constitutional amendment Renzi had backed was crushed, with 59.62% of ballots cast going against the measure. The result is being widely interpreted as opening the door to the conservative Five-Star Movement.

The Financial Times thinks we should be more concerned about what Italy’s result says for the outlook at banks rather than focus on politics, where it thinks the most likely course is a caretaker PM until the next election in 2018, writing: “The more immediate and real concerns relate to Italy’s banking sector. The referendum result throws into question the ability of Monte dei Paschi di Siena, Italy’s third biggest and most fragile bank, to conduct a successful €5bn capital increase that was planned to take place straight after the vote. It also puts the spotlight on the weaknesses of other banks struggling under the burden of non-performing loans and low profitability. Financial market nervousness in the light of Mr Renzi’s defeat could add to these pressures.”

Meanwhile, down in New Zealand, Prime Minister John Key (a former FX dealer) is stepping down in a surprise move that some suggest opens the door to the rise of the country’s deputy prime minister and finance minister, Bill English. Key has been NZ’s prime minister since 2007 and will step down on 12 December, Reuters reports.