European shares spike to 12-month high on Italy relief

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European shares spike to 12-month high on Italy relief

On Thursday, the 4th of July 2019, a basket of European shares wrapped up the day at their highest readings in more than twelve months, almost entirely prodded by an upsurge on Italian stocks, as Rome had at last avoided steep disciplinary actions by EU commission after getting pushed to the edge of a cliff over the recent weeks.

Aside from that, a growing bet that more and more central banks would adopt more-dovish monetary policy amid a recession-like scenario in major economies in Europe and most part of Asia, had added to a bullish bias on European shares, which eventually lifted the indices to their yearly highs.

Extending gains for consecutive six sessions in a row, the regional Pan-European STOXX 600 added 0.1 percent, as European markets appeared to have gathered pace over optimism that next ECB Chair, IMF’s Lagarde would remain as dovish as Draghi had been.

However, although Italy had averted a steep punitive measure for now, but it would likely to face off disciplinary measures in the Autumn, during preparation of its 2020’s budget draft. Quoting statistics, London’s FTSE 100 wrapped up Thursday’s (July 4th) market 0.20 percent lower, Frankfurt’s DAX was down by 0.13 percent and Paris bourse lost 0.12 percent, while Italy’s FTSE MIB added more than 3 percent over optimisms of averting an imminent punitive measure by Brussels, which in effect could have costed the nation billions.