Europe cheers over relief rally as political tensions ease

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Europe cheers over relief rally as political tensions ease

On Wednesday, the 4th of September 2019, a stockpile of European stock indices closed higher after formation of a new coalition government between Democratic Party and 5-Star Movement in Italy with Conte as its Prime Minister and had stoked a broad-based rally, while an ease of political tension in Britain alongside Hong Kong uplifted risk appetites of the investors.

Aside from that, Pan-European STOXX 600 surged 0.89 per cent at the market closure, as Milan listed FTSE MIB outperformed after Italy’s Prime Minister Giuseppe Conte had unveiled its new cabinet, while investors cheered over a more centrist coalition, appeared to be unlikely at the beginning, discarded risks of a snap election alongside a prolonged period of political instability.

Over the other side of the English Channel, investors’ sentiments improved after British lawmakers voted to defeat UK’s new leader Boris Johnson 328 to 301 in a bid to prevent him from polishing Britain’s departure of EU with or without a deal as early as by October 31st.

Quoting statistics, followed by a flurry of upbeat data on Wednesday (Sept. 4th) after several days of nerve-wracking worries over global slowdown tearing money markets apart across the world, Italy’s FTSE MIB rallied 1.6 per cent, breaching the index’s one-month high with financials climbing 1.75 per cent.

London’s FTSE 100 rose 0.59 per cent after UK lawmakers took control of UK House of Commons from PM Boris Johnson, meanwhile prompting him to call for a snap election and to seek for more time from EU Commission to reach a resolution over Brexit amendments.