Stock Markets – Closing Note – 28 May

Ger30, UK100 and SP500 are CFD’s, written over the Dax30, Footsie100 and S&P500 Index futures:

The first day of the week was negative for most European markets and especially for the Italian stock market. As expected, market activity was much lower than usual, as the London and North American stock markets are closed: in the United Kingdom the “Spring Bank Holiday” is celebrated and in the USA the “Memorial Day”. In sectoral terms, the variations were not very marked, and the producers of raw materials stood out in the positive. In Italy, an iron arm between the future government formed by Eurosceptic Movimento 5 Stelle and Lega Nord with the President of the Republic was seen at the weekend. In question was the appointment of Paolo Savona for the powerful Finance portfolio. The President’s denial of the appointment of Paolo Savona as Minister of Finance (in Italy it is the President who formally appoints the ministers), as well as the criticism by some the relevant European public figures induced Giuseppe Conte, the Prime Minister-designate, to resign and the two government parties demanding the holding of early elections. Thus, the Italian stock exchange closed with a fall of 1.99%, and the banks were the main catalysts of this trend. With respect to the debt market, 2-year Italian yields from Treasury Bonds rose to levels around 0.862%, while 10-year TBs declined further to stand at 2.659%. In the foreign exchange market, the Euro suffered a slight devaluation against the Dollar.

 The US market is closed to commemorate Memorial Day.