London — Shares rose in Europe on Monday, with Italian banks gaining after a deal to wind up two failed regional lenders, while the dollar and US bond yields held close to recent lows as subdued inflation raised questions over the outlook for monetary policy. The pan-European Stoxx 600 share index rose 0.6%, led higher by banks, after the agreement under which Italy’s largest retail bank, Intesa Sanpaolo will take on the remaining good assets of collapsed Popolare di Vicenza and Veneto Banca. Intesa shares rose 3.2%. The Italian government will pay it €5.2bn and give it guarantees of up to a further €12bn. Investors have long viewed the Italian banking sector as a major cause of fragility within the eurozone. In index of Italian banks was up 2% and the broader Milan market rose 1.1%. Italian 10-year government bond yields rose 0.2 basis point to 1.91%, widening the gap over benchmark German equivalents by two basis points to 165. "There is the danger that other banks need state supp...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.