Shares rose in
Europe on Monday, with Italian banks gaining after a deal to wind up two
failed regional lenders, while the dollar and U.S. bond yields held
close to recent lows as subdued inflation raised questions over the
outlook for monetary policy.
The-pan-European
STOXX 600 share index rose 0.6 percent, led higher by banks .SX7P,
after the agreement under which Italy's largest retail bank, Intesa
Sanpaolo will take on the remaining good assets of collapsed Popolare di
Vicenza and Veneto Banca.
Intesa shares (ISP.MI) rose 3.2 percent. The Italian government will pay it 5.2 billion euros and give it guarantees of up to a further 12 billion euros.
Investors have long viewed the Italian banking sector as a major cause of fragility within the euro zone. In index of Italian banks .FTIT8000 was up 2 percent and the broader Milan market .FTMIB rose 1.1 percent.
Italian 10-year government bond yields IT10YT=TWEB rose 0.2 basis point to 1.91 percent, widening the gap over benchmark German equivalents DE10YT=TWEB by 2 bps to 165.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS ticked up 0.6 percent as tech led gains.
Trading was slow with many markets in the region closed for holidays to celebrate the end of Ramadan. Japan's Nikkei .N225 rose 0.1 percent.
Mainland Chinese shares rallied, with the CSI300 index .CSI300 rising 1.2 percent to hit its highest level in almost 18 months, after MSCI said the index provider could raise its weighting of China's mainland-listed 'A' shares.
Intesa shares (ISP.MI) rose 3.2 percent. The Italian government will pay it 5.2 billion euros and give it guarantees of up to a further 12 billion euros.
Investors have long viewed the Italian banking sector as a major cause of fragility within the euro zone. In index of Italian banks .FTIT8000 was up 2 percent and the broader Milan market .FTMIB rose 1.1 percent.
Italian 10-year government bond yields IT10YT=TWEB rose 0.2 basis point to 1.91 percent, widening the gap over benchmark German equivalents DE10YT=TWEB by 2 bps to 165.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS ticked up 0.6 percent as tech led gains.
Trading was slow with many markets in the region closed for holidays to celebrate the end of Ramadan. Japan's Nikkei .N225 rose 0.1 percent.
Mainland Chinese shares rallied, with the CSI300 index .CSI300 rising 1.2 percent to hit its highest level in almost 18 months, after MSCI said the index provider could raise its weighting of China's mainland-listed 'A' shares.
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