European Markets - Positive Start to the Week, China Data & Italian Bank Bailout
The European markets were largely positive on Monday as data out of China showed a possible turnaround and the Italian government looked to shore up its flailing banks.
Toronto, Canada, April 12, 2016 (Newswire.com) - 12th April 2016
Valgard Investments
The European markets were largely positive on Monday as data out of China showed a possible turnaround and the Italian government looked to shore up its flailing banks.
Barry Cahill, PR Manager
European Markets – Positive Start to the Week, China Data & Italian Bank Bailout
The European markets were largely positive on Monday as data out of China showed a possible turnaround and the Italian government looked to shore up its flailing banks.
European Markets Close 11th April:
DAX – 9682.99 +0.63%
CAC – 412.63 +0.22%
BEL20 – 3369 +0.45%
SMI – 7751.58 -0.84%
The sense of positivity in Europe started with news out of China. The data released on producer prices saw its first gain in 2.5years and is an indication that the policies being implemented in the 2nd largest economy are starting to work. China is still under the magnifying glass as it looks to support growth for 2016. Having seen a significant fall in growth in 2015 and with an estimate of just 6-6.5% for 2016 there is much to be done to keep the economy on track.
What could be seen as a warning for the Eurozone, was actually welcomed by investors yesterday as the Italian government confirmed it was involved in implementing a fund to help prop up it smaller banks which are seen under serious strain. The private fund, said to be in the region of €5bn will look to buy up stock and bad debt. The Italian banking industry is exposed to the tune of €360bn which equates to nearly a third of the EU debt.
The news buoyed Italian bank stocks, yet the fact that the fund is private should cause concern to other EU members as it still highlights the weakness in European banking stocks and their reliance on bailouts recently.
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Source: Valgarrd Investments