European shares are higher Monday, as investors are buoyed by reassurances that the Italian Government’s next budget will be within EU rules and help support the struggling economy.
European index gains have also been achieved, despite further tensions between the US and China, while a deadlocked Swedish election result has also failed to weigh heavily on sentiment.
By 1305 BST, the EUROSTOXX 600 was 0.64% higher, while the EUROSTOXX 50 gained 0.89%. Regionally, the German DAX rose 0.63%, the French CAC was 0.69% in the green and Spanish IBEX added 1.32%.
Italian bank stocks rise
News that the upcoming Italian Government’s 2019 budget is set to ensure Italy remains within EU fiscal rules, has helped ease some investor fears that the country’s leaders could propose one that could stretch the EU’s rules and weaken it’s support from the bloc.
Italian banks have been the main beneficiaries from this development. Risers include:
- Mediobanca shares rose 3.89% to €9.02.
- Intesa Sanpaolo shares moved 4.80% higher to €2.37.
- Banco BMP shares, meanwhile, gained 4.24% to hit €2.22.
Those bank stock gains helped support the positive indices, despite ongoing fears over the escalating US-China trade tariff dispute.
US President Donald Trump said he could impose new import tariffs on all of China’s goods exported to the US. He also tweeted over the weekend that Apple could shift its entire manufacturing process to the US to avoid incoming tariffs.
“Apple prices may increase because of the massive Tariffs we may be imposing on China - but there is an easy solution where there would be ZERO tax, and indeed a tax incentive. Make your products in the United States instead of China. Start building new plants now. Exciting!,” Trump typed.
Aside from the rising Italian bank stock prices, another share mover of note was Swiss luxury goods business, Richemont shares. The Swiss firm appointed Jerome Lambert as its new CEO and also reported a 10% gain in its 5-month sales.
Richemont shares rose 1.44% to CHF83.32.