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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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European Equity Market Handover Italy drag shrugged off for now

Article By: ,  Financial Analyst
May 30, 2019 11:30 AM


Stock market snapshot as of [30/5/2019 3:29 PM] 

  • The European stock market bounce was going so well before more ructions in Italy opened a fresh seam of negative sentiment
  • Italy’s FTSE MIB has duly swung into the red and was down 0.3% at last look.  It comes as Deputy Prime Minister Matteo Salvini resumes the Northern League’s antipathy with the European Union. He’s insisting he’d rather end the coalition government than backtrack on a plan to cut taxes for most Italians. That would probably move Rome even further away from EU fiscal prescriptions
  • Most other large EU stock markets are off highs though still positive. It’s due to a combination of profit taking, oil shares tracking bullish inventory data and bank stocks
  • Investors anticipate favourable details about the ECB’s new short-term lending programme when the central bank meets next week
  • U.S. stock markets have opened firm, partly tracking a rebound in Treasury yields, with profit taking also seeping into that key safe-haven market after an eye-catching ramp of late, in step with dwindling risk appetite
  • A firm print by the second assessment of U.S. GDP is also helping underpin U.S. shares. Year-on-year growth printed at 3.1% compared to a consensus compiled by Bloomberg of 3%
  • As well, the weak core inflation component is being interpreted as likely to keep Fed policy on the backfoot – a de facto positive for risk assets

Corporate News

  • U.S. car shares are among the sectors leading from the front. In itself, that tends to back the profit realisation thesis for the more optimistic look of Wall Street on Thursday
  • Note MSCI’s global auto makers index is down about 2% since the beginning of the year
  • Dollar General beats first-quarter estimates enabling shares of the discount retailer to surge 7%

Upcoming corporate highlights

 


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