Italian banks help European shares snap losing streak
Reuters
Published Oct 22, 2018 03:38AM ET
Italian banks help European shares snap losing streak
MILAN (Reuters) - European shares rose in early deals on Monday after Moody's decision to keep Italy's sovereign rating stable eased worries over a sell-off in the country's government bonds, boosting shares in Italian banks.
Italian banks, which are heavily exposed to government bonds, rose more than 3 percent, driving European banks (SX7P) higher and helping the pan-European STOXX 600 (STOXX) index rise 0.4 percent following three straight days of losses.
Autos (SXAP) were also in demand with Fiat Chrysler (MI:FCHA) gaining 4.3 percent after the Italo-American car maker agreed to sell its Magneti Marelli unit in a 6.2-billion-euro ($7.16 billion) deal. A pledge from German Chancellor Angela Merkel to ward off diesel driving bans gave to support to German carmakers.
Salvatore Ferragamo (MI:SFER) topped the leader board, rising 7 percent and hitting a one-month high after Wanda Ferragamo, the honorary president and shareholder of the Italian shoemaker died at the age of 96.
Philips (AS:PHG) was a weak spot, down 5.2 percent, after core profit growth at the Dutch healthcare technology company missed analyst estimated, partly due to currency headwinds.
Ryanair (I:RYA) rose 3.2 percent even after it reported a 7-percent fall in profit during its key April-September season on Monday and said European short-haul airfares would remain soft this winter. Traders said there were no negative surprises in the airline's results following the recent profit warning.
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Written By: Reuters
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