Europe higher as trade war concerns ease; Italy sinks 1.8%; Ryanair down 1.3%
by Admin |
The FTSE 100 was up by 0.47 percent and the CAC 40 in Paris was higher by 0.26 percent. The former hit a fresh intraday record high Monday. Meanwhile, the main Italian index fell more than 1.8 percent in early European deals. The German and other European markets were closed for a public holiday.
Market sentiment was driven by trade news and political events in Italy. Fears over a trade war between the U.S. and China eased after comments from U.S. Treasury Secretary Steven Mnuchin that both countries are putting the trade war "on hold" as they try to reach a compromise. His comments also sent U.S. stock futures higher.
Political instability in Italy seems to be coming to an end with a power-sharing agreement between the left-wing Five Star Movement and the right-wing Lega. Both parties are due to present their deal to the country's president later on Monday. However, such a government could raise concerns across the euro zone due to planned higher spending. French Finance Minister Bruno Le Maire warned Sunday that Rome needs to respect European spending rules, according to the Financial Times. The Italian banking index fell 2.9 percent Monday on such spending concerns.