Europe Stocks Rise as Banks, Italian Shares Bounce Back
(Bloomberg) -- European equities advanced, led by a sharp rebound in the Italian market, after a credit ratings decision by Moody’s removed the immediate threat of a downgrade to junk.
The Stoxx Europe 600 Index climbed 0.5 percent in early trade. The FTSE Italia All-Share Banks Index surged 2.7 percent, with Banco BPM up 3.9 percent and UniCredit up 2.6 percent.
Global stocks received a boost from verbal support by Chinese officials, with the Chinese President Xi Jinping vowing “unwavering” support for the country’s private sector, amid concerns that the spat with the U.S. will hurt growth. Investors are also carefully watching the earnings results for signs of the tariffs’ impact on profits, as Philips slumped as much as 9.9 percent today after its third-quarter profit missed analyst estimates.
“This week’s focus is likely to remain on Italy,” said Michael Hewson, chief market analyst at CMC Markets UK. “It’s also likely to be another week of ups and downs for the pound with respect to any Brexit talks.”
©2018 Bloomberg L.P.