Italy's financial markets opened on a slight positive note on Tuesday as investors watched the country's moves toward forming a euroskeptic-led government.

The spread on the Italian debt versus the benchmark German bund opened with an 8-base points decrease, showing a slight opening to the League and the 5-Star Movement by investors, even though the prospect of a populist government in Italy, the eurozone's third-largest economy, has spooked European partners and investors who fear its euroskeptic, budget-busting program could shake the region's cohesion and undermine its growth.

"Luckily enough markets seem to be taking moderately, positively, certainly not tragically the fact that Italy is about to reach an agreement for a government now that some names are coming up, of experts and not only politicians," said financial market analyst Guido Giannaccari.

"Surely, the certainty of having a counterpart is a fundamental and important factor for the markets."

Rival populist forces - the anti-establishment 5-Star Movement and right-wing League - each squeezed their often-competing agendas into the government programme.

The plan suggests a spending spree that would add to Italy's debt load, already Europe's heaviest after Greece, with little detail on financing.

But what is most concerning to economists, other eurozone nations and financial markets is a euroskeptic attitude that both political parties share, even if they omitted language from an early draft that called for ways to allow countries to exit the common euro currency.

Yet some analysts think a new Euro-skeptical government could trigger some openings for the critical economic scenario in Italy, bringing Italy back to the negotiating table.