World stocks edge higher, after heavy losses, helped by Italy
A degree of calm returns to stock markets with European shares edging up from 22-month lows as Italy’s cabinet approves expansionary budget
London — World stocks nudged higher on Tuesday, as focus turned to earnings season and a rebound in Italian assets helped battered equities find firmer ground for now. In Europe, shares rallied 0.4% and pulled back from Monday’s 22-month lows. This followed gains in some Asian markets, led by Japan’s blue-chip Nikkei index, which was up more than 1% after a decline of nearly 2% the previous day. Gains in Italy’s bond and stock markets after Italian economy minister Giovanni Tria defended the country’s expansionary budget helped lift sentiment. The euro also firmed. Calm in Italy — a major source of turbulence in world markets in recent weeks — helped explain the recovery in risk appetite on Tuesday, said Marchel Alexandrovich, European financial economist at Jefferies in London. Stock market sentiment in Europe also got a boost from expectations that earnings season will deliver double-digit earnings growth for the third quarter. “If you look at what’s happening here and now, it is ...
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.