Early Stocks Review: Shares in Europe moved higher on Wednesday
The pan-European Stoxx 600 was 0.3 percent higher with almost every sector in positive territory. In Italy, the FTSE MIB, jumped 1.2 percent in early deals.
The Italian newspaper Corriere della Sera reported Wednesday that the government is planning to lower deficit from 2.2 percent in 2020, to 2 percent in 2021, from an expected 2.4 percent next year. Though the spending plans are much higher than what the previous government planned, the willingness to decrease the deficit in the coming years has lifted the euro. The common currency rose 0.3 percent against the dollar to $1.15 following the report. Italian borrowing costs were also lower as a result.
Looking at individual stocks, Banco Bpm jumped 3.6 percent on the Italian news. Other Italian banks also traded higher.
Shares in Altran Technologies led the gains in Europe, up by 11 percent, following a rate upgrade. At the other end of the index stood Tesco. Its shares dropped more than 5 percent after the grocer reported first half numbers.
Luxury carmaker Aston Martin started trading on the London Stock Exchange for the first time. Shares opened flat at the offer price of 19 pounds ($24.70) per share.
Meanwhile, Brexit continues to dominate investor sentiment. U.K. Prime Minister Theresa May is due to speak later on Wednesday morning, during her party’s conference in Birmingham.
On the data front, there will be U.K. euro zone retail sales due at 10 a.m. London time.