Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:
Yesterday European stocks were boosted by the banking sector, notably Italian bonds. The Italian press has published a number of news reports concerning Monte dei Paschi di Siena. According to Reuters, citing an Italian source, the Italian State may acquire a stake of 2000 M. € in the capital of the oldest bank in the world. This news has not yet had an official confirmation. If confirmed, this transaction lowered the bank’s capital requirements to about 2000 M. €. The La Stampa newspaper said that the Italian State could use the European Stability Fund, calling for a plan to support its banking sector in a manner very similar to that required by Spain during the sovereign debt crisis. According to the same source, this program of aid to the transalpine banking would amount to 16000 M. €. The shares of Monte dei Paschi di Siena were valued at 11%. Still, with regard to the European banking sector, Credit Suisse has reduced its projections for the results of its investment and asset management units for the years 2017 and 2018. The bank’s CEO said that this decrease should be Offset by a more aggressive cost-cutting plan. The European oil sector ended up despite the recent weakness of oil. In the debt market, one should notice the decline in yields in Southern Europe.
American markets did not share a common trend. While the Dow Jones and S & P traded on gains, the Nasdaq was being penalized for weak biotech shares. The weakness of these stocks and of the pharmaceuticals was explained by the declarations of Donald Trump that defended the decrease of the prices of diverse medicines.