European Stock Markets
European shares rose on Monday as easing trade war worries lifted the dollar, supporting exporters, while selling pressure on Italian stocks calmed down after a painful week, as markets awaited developments in the creation of a new government.
The pan-European STOXX 600 index rose 0.4 percent by 0914 GMT, hovering near its highest level in over 3 months, while the FTSE 100 .FTSE hit a new record high, as strength in the dollar supported the internationally exposed index.
The dollar hit a fresh five-month high on relief that U.S. Treasury Secretary Steven Mnuchin declared the U.S.-China trade war “on hold” following their agreement to suspend the tariff threats.
While activity was reduced by the closure of some markets, including Germany, for Whit Monday, bargain hunting supported Italian stocks, even though some investors warned about the risk of rushing back into the market.
Italy’s anti-establishment 5-Star Movement and League parties will seek the backing of the president later on Monday for a prime minister to lead a government whose plans to jack up spending were roiling financial markets.
Shares in banks BPER Banca (EMII.MI) and UBI (UBI.MI) and carmaker Fiat Chrysler (FCHA.MI) were the top gainers on the FTSE MIB benchmark index, while only drugmaker Recordati (RECI.MI) traded in negative territory.
Italy's FTSE MIB .FTMIB benchmark index suffered its biggest one-week loss since early March on Friday on worries the new government could relax fiscal discipline.
On Monday the index was still down 0.5 percent but due to a number of stocks, including heavyweight bank Intesa Sanpaolo (ISP.MI), going ex-dividend. Stripping out that effect the FTSE MIB would be trading higher. Intesa rose 1.5 percent.
FTSE MIB futures IFSc1 rose 1.3 percent.
Elsewhere, Ryanair (RYA.I) fell as much as 3.1 percent at the open. The Irish airline reported a record annual profit as it brushed off a rostering mess-up that forced it to cancel flights and sparked a dispute with pilots, but warned profits would fall back in the coming year due to higher costs and no fare growth.
Its shares however pared all losses and rose 2.6 percent.
The pan-European STOXX 600 index rose 0.4 percent by 0914 GMT, hovering near its highest level in over 3 months, while the FTSE 100 .FTSE hit a new record high, as strength in the dollar supported the internationally exposed index.
The dollar hit a fresh five-month high on relief that U.S. Treasury Secretary Steven Mnuchin declared the U.S.-China trade war “on hold” following their agreement to suspend the tariff threats.
While activity was reduced by the closure of some markets, including Germany, for Whit Monday, bargain hunting supported Italian stocks, even though some investors warned about the risk of rushing back into the market.
Italy’s anti-establishment 5-Star Movement and League parties will seek the backing of the president later on Monday for a prime minister to lead a government whose plans to jack up spending were roiling financial markets.
Shares in banks BPER Banca (EMII.MI) and UBI (UBI.MI) and carmaker Fiat Chrysler (FCHA.MI) were the top gainers on the FTSE MIB benchmark index, while only drugmaker Recordati (RECI.MI) traded in negative territory.
Italy's FTSE MIB .FTMIB benchmark index suffered its biggest one-week loss since early March on Friday on worries the new government could relax fiscal discipline.
On Monday the index was still down 0.5 percent but due to a number of stocks, including heavyweight bank Intesa Sanpaolo (ISP.MI), going ex-dividend. Stripping out that effect the FTSE MIB would be trading higher. Intesa rose 1.5 percent.
FTSE MIB futures IFSc1 rose 1.3 percent.
Elsewhere, Ryanair (RYA.I) fell as much as 3.1 percent at the open. The Irish airline reported a record annual profit as it brushed off a rostering mess-up that forced it to cancel flights and sparked a dispute with pilots, but warned profits would fall back in the coming year due to higher costs and no fare growth.
Its shares however pared all losses and rose 2.6 percent.
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