European shares rise amid Italian minister’s euro promise

European shares are higher Monday as Italian banks surge on pro-euro comments from new economy minister Tria.

European shares rise amid Italian minister’s euro promise

European shares are trading higher in the early afternoon Monday, as Italian banks gain on comments from the new Italian economy minister confirming the country would remain in the euro.

The positive tone also comes despite disagreement at the G7 weekend meeting where US President Trump chose not to sign the group communique.

By 1320 BST, the EUROSTOXX 600 was 0.35% higher, while the EUROSTOXX 50 gained 0.29%. Regional bourses were also upbeat. The German DAX edged up 0.03%, the French CAC was up 0.12%, the Spanish IBEX was 0.73% in positive territory and the Italian MIB was 0.36% in the green.

Italian banks

Building on the recovery which began last week, Italian banks are in positive territory Monday amid comments from the country’s new Economy Minister Giovanni Tria. He said in a newspaper interview that the country would remain in the euro and also reduce its debt levels.

“There isn’t any discussion on a plan to leave the euro,” Tria said in the interview published in Italian newspaper the Corriere della Sera, Sunday.  “The government is determined, in any event, to prevent market conditions which push towards the exit to be materialized,” he added.

UniCredit shares rose 4.93% to €14.26, Intesa Sanpaolo shares were 4.74% higher at €2.54 and UBI Banca shares gained 3.22% to hit €3.21.

Investors discount G7 disagreement – for now

Also of interest Monday is that investors appear to have shrugged off the disagreement between US President Trump and his traditional allies at the latest G7 meeting. After backing out of the previously agreed group Communique, Trump took to Twitter to share his trade views once the meeting was over.

“Fair Trade is now to be called Fool Trade if it is not Reciprocal,” Trump said in the beginning of a series of tweets on trade.

He ended with: “Sorry, we cannot let our friends, or enemies, take advantage of us on Trade anymore. We must put the American worker first!”

Despite that rhetoric, it’s likely that investors are looking ahead to the meeting between Trump and Kim Jong Un, Tuesday.

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