European Shares Set To Snap Five-Day Losing Streak, Italy Banks Off Highs | 11/20/2018 | Staff
abbycraig (Posted by) Level 3
MILAN (Reuters) – European shares rose on Wednesday in a broad-based bounce that saw the battered tech sector recover following a widespread sell-off on worries over iPhone demand and pricey valuations.

Italian banks also rose but came off highs after the League Party denied a report that Matteo Salvini, its leader and the deputy Prime Minister, was willing to compromise on the budget.

STOXX - Percent - GMT - Losing - Streak

The STOXX 600 rose 0.5 percent by 1000 GMT, and was set to snap a five-day losing streak that had pushed the pan-European benchmark close to the nearly two-year low hit last month.

Germany’s DAX index rose 0.6 percent and London’s FTSE 100 added 0.7 percent.

Banks - Percent - Report - Salvini - Government

Italian banks rose as much as 2.6 percent at the open after a report said Salvini might be open to review the government’s 2019 budget, fuelling hopes the country could avert a clash with the European Commission.

But later they pared some gains as the League Party said Salvini was not seeking any changes to the 2019 draft budget. The European Commission is set to release its response to Italy’s draft plan later in the day.

Banking - Index - Percent

The Italian banking index was up 2.3 percent.

Italian banks have lost around 40 billion euros in market cap from their May peak as worries over Italy’s spending plans lifted government bonds yields to multi-year highs, eroding the value of their large sovereign bond portfolios and raising the risk of possible capital injections for the weaker lenders.

Gainer - Banks - Banco - BMP

Top gainer among Italian banks was Milan-based Banco BMP , which rallied...
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