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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 Rome rumbles reverse rebound attempt

Article By: ,  Financial Analyst
May 28, 2019 10:26 AM


Stock market snapshot as of [28/5/2019 2:13 PM]

  • A dearth of new developments on the U.S.-China trade front increases focus on a confluence of events in Rome
  • Chiefly, these are widening coalition fractures, a strengthened Northern League following EU elections and a European Commission triggered by Italy’s failure to follow debt and budgetary prescriptions. A multibillion euro fine may follow
  • Italy’s volatile yields are back on the rise. The closely watched 10-year rate has added more than 184 basis points since the end of last week to stand around 2.70%. It peaked at 2.8% a fortnight ago
  • Markets are thereby set to go back in thrall to Italian yields after their elevation a year ago coincided with some of the most eye-catching European stock index whipsaws for years
  • Germany’s benchmark yield spread to Italy’s duly widens. The U.S. Treasury rally gets fresh legs, sending the 10-year rate to a 19-month low
  • Still, a surprise swing higher in an EU economic confidence gauge, earlier—with weak trimmings—helps keep a floor under shaky indices
  • Like some European cash markets, S&P 500 mini futures were flirting with positive territory near Wall Street’s open

Corporate News

  • Shares in Italy’s fragile banks have slumped, including a 3% drop by FinecoBank and weakness across other large lenders like Mediobanca, UniCredit and Intesa Sanpaolo
  • Persistent contagion fears return, weighing heavyweights further afield like Société Générale which was down about 2% a while ago
  • Fiat, whose merger news offered positive global market distraction on Monday adds a little more to double-digit percentage gains a day earlier. This helps the car & parts sector to a second positive session too
  • Deepwater contractor Seadrill could be among the sharpest S&P 500 fallers at open, as it tumbles 15% in pre-market deals following a brokerage downgrade

Upcoming economic highlights


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