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Sep 26 (Reuters) – Italian stocks jumped nearly 1% on Monday, outperforming their regional counterparts as Telecom Italia and financial stocks rose after the right-wing coalition led by Georgia Meloni looked set to win the general election from the country.
Italy’s FTSE Mib index (.FTMIB) rose 0.9% after falling 4.7% last week in its worst weekly performance since early June.
Shares of Telecom Italia (TLIT.MI) gained 5.4%, while banks (.FTITLMS3010) gained 1.3% after the center-right coalition won a clear majority in both houses of parliament , potentially giving Italy a rare chance at political stability after years of turbulent and fragile coalitions.
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Meloni also pledged to back Western policy on Ukraine and not take risks with Italy’s fragile finances. Read more
“Overall, a result that is likely more supportive of the market than initially feared, but suggests that the move we are seeing in equities is more of a relief rally than a vote of confidence.” , said Stuart Cole, head of the macro. economist at Equiti Capital in London.
“We see nothing more than a brief pause after the falls we experienced last week. The economic outlook continues to be bullish for equities and looking ahead we will continue to fall, and that will apply. to Italian stocks as much as to others.”
The Continental STOXX 600 Index (.STOXX) fell 0.4%, extending a rout from last week. Oil and gas (.SXEP) and mining (.SXPP) stocks fell 1.3% and 1.9%, respectively, as crude and metals prices tumbled due to the surging dollar and rising US dollar. fears of a drop in demand due to an expected global recession.
Germany’s main stock index (.GDAXI) fell 0.1% after a survey showed German business sentiment fell more than expected in September. Read more
Germany’s economy is facing recession and nearly all sectors are in the red, Ifo survey chief Klaus Wohlrabe told Reuters on Monday.
The STOXX 600 has lost 6.2% so far this month, heading for its second straight month of declines, as Europe grapples with energy and cost-of-living crises amid the Russian-Ukrainian war that impedes gas flows and the central bank’s hawkish measures to fight inflation.
Among individual stocks, MediaForEurope (MFEB.MI) rose 2.2% after Reuters reported that the Italian television group had teamed up with Iliad founder Xavier Niel to submit a non-binding offer to buy the participation of RTL Group (AUDK.LU) in the French television company M6 (MMTP.PA). Read more
Belimo Holding (BEAN.S) jumped 7.8% after Berenberg upgraded shares of the Swiss heating and ventilation solutions maker, saying the market did not fully appreciate the growth potential of the company in a context of growing renovation demand.
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Reporting by Devik Jain in Bengaluru; Editing by Saumyadeb Chakrabarty and Subhranshu Sahu
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