European shares are higher Monday, as investor sentiment is brighter following news that Moody’s Ratings agency kept the Country’s ratings above Junk status. Individual company news has also proved upbeat and supportive of a positive trading session, so far.
By 1310 BST, the EUROSTOXX 600 was 0.43% higher, while the EUROSTOXX 50 was up 0.36%. Regional bourses were also on the up. The German DAX was 0.68% in the green, the French CAC gained 0.42%, the Spanish IBEX was 0.17% in positive territory, while the Italian MIB rose 0.29%.
Italian ratings news
Moody’s investor service has downgraded Italy’s sovereign rating outlook to stable, just one notch above junk status. However, that Moody’s has retained an above junk status rating on the country that’s struggling with its budget plans, proved a point for good cheer among investors.
A stable outlook suggests Moody’s is unlikely to initiate a further downgrade to the country any time soon.
“The stable outlook reflects the broadly balanced risk at the Baa3 rating level,” the ratings agency said. “In Moody's view, Italy still exhibits important credit strengths that balance the weakening fiscal prospects.”
However, the outlook isn’t all good for Italy. A Reuters article, citing sources, suggest the EU is set to request a revised budget from the Italian government, due to concerns over the deviation from the EU’s core budgetary rules.
Against that Italian focused backdrop, there were some positive individual stock movers, so far Monday.
Ryanair shares are 5.8% higher at €12.12, despite the budget Irish airline reporting a 7% decline in its first-half profits, from a year earlier. Other details in the H1 earnings report buoyed the stock, including news that traffic rose, while its passenger load factor was also higher than the same period in 2017.
Fiat shares are also in the green as the European-US car manufacturer announced the sale of its high-tech car parts unit to Japanese car parts maker, Calsonic Kansei, for €6.2 billion.