Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Markets

News : Markets
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance ProfessionalsCalendarSectors 

Political turmoil in Italy weighs on European stocks

share with twitter share with LinkedIn share with facebook
share via e-mail
0
07/19/2019 | 12:48pm EDT
The German share price index DAX graph at the stock exchange in Frankfurt

(Reuters) - European shares ended only marginally higher on Friday as worries about the stability of Italy's government dented optimism from renewed signals the U.S. Federal Reserve will cut interest rates soon.

The pan-European STOXX 600 <.STOXX> closed up 0.12% after rising as much as 0.7% in morning trade, with Italy's blue-chip stocks <.FTMIB> falling 2% to two-week lows.

Milan-listed banks <.FTIT8300> were the hardest hit on worries the year-old coalition government might collapse after sparring between the two main political parties and that a new election could take place too late for a new administration to approve a 2020 budget.

Government ministers are due to meet later on Friday.

"The uncertainty surrounding the political situation in Italy remains relatively high, especially with discussions about the budget coming in later in the year," said Bert Colijn, a senior economist at ING. "It is translating into risk for the moment."

Aiding a strong start for Europe were comments overnight from New York Fed President John Williams who said policymakers could not wait for economic disaster to hit before adding stimulus, reviving expectations of a deeper-than-expected rate cut in July and sparking a rally in shares worldwide.

Markets have fully priced in a 25 basis point cut by the Fed at a policy meeting next week and expect the European Central Bank to hint at a similar move amid signs global growth is slowing.

Banks <.SX7P>, which tend underperform in a falling interest rate environment, fell about 0.8%, the worst performing sector on the STOXX 600.

Poor earnings over the last two sessions had threatened to take the index lower on the week, but Friday's gains helped the STOXX end the week higher for the sixth time in seven weeks.

Trade-sensitive stocks of technology companies and automakers got a lift after U.S. Treasury Secretary Steven Mnuchin suggested in-person talks between U.S. and Chinese officials could follow after telephone conversations on Thursday.

Industrial stocks <.SXNP> were the top gainers as shares in German payments company Wirecard jumped 5.5% after it signed an agreement with supermarket chains ALDI Nord and ALDI Sued to process card payments.

Sweden's Volvo rose 5.5%, recovering from a slide on Thursday after the auto and truck maker announced cost cutting measures to counter the impact of tariffs.

Belgium-based Budweiser owner Anheuser-Busch InBev also jumped 5.5%, keeping the euro zone's blue-chip index afloat, after the debt-heavy brewer said it would sell its Australian operations to Japan's Asahi and was still interested in reviving the stalled flotation of its Asian business.

Media shares <.SXMP> were a weak spot, sliding half a percent on Publicis' 6% drop after the advertising group cut its 2019 revenue growth guidance.

(Reporting by Sruthi Shankar and Amy Caren Daniel in Bengaluru; editing by Kirsten Donovan)

By Sruthi Shankar and Amy Caren Daniel

Stocks mentioned in the article
ChangeLast1st jan.
ANHEUSER-BUSCH INBEV 1.33% 85.63 Delayed Quote.48.41%
ASAHI GROUP HOLDINGS LTD 0.69% 4814 End-of-day quote.14.65%
EURO STOXX 50 1.41% 3329.08 Delayed Quote.10.92%
PUBLICIS GROUPE 2.03% 42.31 Real-time Quote.-15.52%
STOXX EUROPE 600 1.24% 369.63 Delayed Quote.9.47%
VOLVO 0.86% 128.55 Delayed Quote.10.87%
WIRECARD AG 3.09% 138.65 Delayed Quote.4.41%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news "Markets"
09:38aMARKET SNAPSHOT: Stock-market Investors Rattled By Bond Market's 'warning Shot' -- Here's What's Next
DJ
08/17WALL STREET WEEK AHEAD : Lower rates could boost housing stocks, but risks remain
RE
08/16TSX rises 0.86 percent to 16,149.79
RE
08/16After Yield-Curve Inversion, Tech Stocks Look Promising -- Update
DJ
08/16WALL STREET STOCK EXCHANGE : U.S. Stocks Rise but Notch Modest Weekly Loss
DJ
08/16J.C. PENNEY, VIACOM, GENERAL ELECTRIC : Stocks That Defined the Week
DJ
08/16MARKET SNAPSHOT: Dow Ends Up 300 Points After Volatile Week But Stocks Still End Down For Week
DJ
08/16Dollar firms, stocks soar on ECB rate cut expectations
RE
08/16Dollar firms, global stocks soar on ECB rate cut expectations
RE
08/16Dollar firms, stocks soar on ECB rate cut expectations
RE
Latest news "Markets"
Advertisement