Italy coalition deal, China trade comments drive gains for European shares

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Italy coalition deal, China trade comments drive gains for European shares

On Thursday, the 29th of August 2019, despite a dawdling opening of the day, a majority of European stock indices managed to wrap up the day in an affirmative territory, while progresses over Italy’s coalition deal slumping prospect of a snap election alongside a basket of bittersweet trade comments from China buoyed investors’ optimism towards riskier assets.

On top of that, expectation over forming a more centrist coalition government in Italy as soon as by next Thursday (August 5th) between two former political enemies, the 5-Star Movement alongside the Democratic Party, lifted Italy’s Milan bourse 1.33 percent higher to breach its highest level since August 2nd 2019.

Meanwhile, China’s Commerce Ministry’s comments over trade talk had added to investors’ optimism alongside a likely Italy coalition government. Concomitantly, adding that an upbeat market sentiment over Italy boost and China trade comments had brewed a decent improvement on risk-appetite, a markets economist at Capital Economics in London, Simona Gambarini said, “There seems to be some easing of trade worries that is giving a bit of boost to risky assets and stocks in particular.

” Quoting statistics, on Thursday’s (August 29th) market closure, London’s FTSE 100 added 0.98 percent to round off the day at 7,184.32, Frankfurt’s trade-sensitive DAX rose 1.18 per cent to 11,838.88, while French CAC 40 remained flatlined.

Elsewhere in Europe, Italy’s FTSE MIB added 1.94 per cent to wrap up Thursday’s (August 29th) market at 21,398.17, a level never seen since August 2nd, 2019, while Madrid’s IBEX 35 index soared 0.54 percent to 8,794.30 at Thursday’s (August 29th) market wind down.