Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Italian budget worries knock European shares lower

Stock MarketsMay 15, 2019 05:47AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The German share price index DAX graph at the stock exchange in Frankfurt

By Medha Singh

(Reuters) - Italian shares led losses in Europe on Wednesday after the country's deputy prime minister said Rome was ready to break EU fiscal rules, masking early gains fueled by optimism around U.S.-China trade rhetoric.

The pan-European STOXX 600 index fell 0.1% by 0910 GMT weighed down by a 0.7% drop in the bank-heavy Italian index.

Italy's deputy prime minister Matteo Salvini's comments from Tuesday have raised concerns about the country's high spending, taking a hit on Italian banks.

"It's not the first time the Italians have pushed the boundaries with EU fiscal rules, it is just this time his rhetoric has come at a time when the markets are probably more sensitive to this commentary than normal," said John Woolfitt at Atlantic Markets.

The European banks lost 0.3%, also weighed down by some disappointing earnings.

Raiffeisen Bank International (RBI) and Dutch bank ABN Amro both missed profit expectations. French bank Credit Agricole's first-quarter net profits dropped after two one-off events offset gains in profitability at some of its businesses.

Bucking the trend was British bank CYBG Plc, which rose 4% after posting a first-half profit.

European markets witnessed a strong rebound from two-month lows on Tuesday after U.S. President Donald Trump adopted a softer tone on trade following a recent flare-up in tensions between Beijing and Washington with both sides slapping duties on each others' imports.

Autos, which were among the leading gainers a day earlier, slipped 1.1%, weighed down by shares of Renault (PA:RENA) and Volkswagen (DE:VOWG_p).

Renault's Japanese partner Nissan issued a bleak earnings outlook.

In an earnings-heavy day for British companies, London's FTSE 100 outperformed its peers. The blue-chip index was helped by Compass Group (LON:CPG) Plc shares after the caterer raised its full-year revenue outlook. (L)

E.ON tumbled more than 5%, among the biggest losers, as Goldman Sachs (NYSE:GS) downgraded the energy company's stock. Its shares also traded ex-dividend. On the other hand, its rival RWE rose after beating quarter profit expectations.

Meanwhile, latest data showing euro zone economy accelerated sequentially first quarter of 2019, helped by a rebound in the biggest economy Germany, failed to lift investors' spirits.

"While the recession in the German industry may have started to bottom out, businesses in the export-orientated sector barely added anything to growth in the first-quarter," said Florian Hense, an economist at Berenberg.

"The German economy is not out of the woods, yet."

Italian budget worries knock European shares lower
 

Related Articles

3 Growth Stocks to Own for The Long Term
3 Growth Stocks to Own for The Long Term By StockNews - Sep 22, 2021

The recovery of the U.S. economy from its COVID-19 pandemic-led slump has been dizzying. Moreover, proposed infrastructure and supplementary spending bills are expected, if passed,...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email