European stocks seen higher after Italy agrees to form a government
European markets are set to open higher Friday morning after Italian parties averted the prospect of a snap election, although renewed fears of a global trade conflict appeared to limit gains.
- The FTSE 100 is seen 8 points higher at 7,698; the CAC is expected to open up around 18 points at 5,421 while the DAX is poised to start 35 points higher at 12,656, according to IG.
- A coalition government has been agreed in Italy, marking an end to months of political uncertainty in the euro zone’s third-largest economy.
- Wall Street posted sharp losses overnight after the U.S. said it would impose tariffs on aluminum and steel imports from Canada, Mexico and the European Union.
The FTSE 100 is seen 8 points higher at 7,698; the CAC is expected to open up around 18 points at 5,421 while the DAX is poised to start 35 points higher at 12,656, according to IG.
In Asia, equities edged higher after stronger-than-anticipated regional economic data. MSCI’s broadest index of Asia-Pacific shares, excluding Japan, rose 0.1 percent Friday.
Wall Street posted sharp losses overnight after the U.S. said it would impose tariffs on aluminum and steel imports from Canada, Mexico and the European Union. The move immediately prompted vows of retaliation from countries targeted by the charges, reigniting concerns of a global trade war.
Back in Europe, a coalition government has been agreed in Italy, marking an end to months of political uncertainty in the euro zone’s third-largest economy. Rome’s political convulsions had roiled global financial markets earlier in the week.
Meanwhile, Spain appeared poised to become the next country to test the stability of southern Europe. Prime Minister Mariano Rajoy is likely to be forced out of office Friday, after key opposition parties announced their intention to vote against him in a motion of no-confidence.
On the data front, a final estimate of Italian first-quarter GDP (gross domestic product) data is expected to be released at around 9 a.m. London time.
