Italy budget news, China stimulus give markets strong start to week
The buoyant mood looks likely to spill over into US markets, with corporate earnings reports predicted to exceed expectations
London — European shares gained on Monday amid relief over Italy’s budget, following rallies in Asia after China promised to provide stimulus to stabilise its economy and offset the impact of US tariffs. Promises of tax cuts and co-ordinated official statements of support for stock markets in the world’s second-largest economy saw Chinese shares stage their biggest one-day surge in three years. Shanghai blue chips jumped around 4.5%, adding to Friday’s bounce on Beijing’s pledge of support for the economy and companies. Japan’s Nikkei rose 0.4%. Markets elsewhere in Asia also enjoyed healthy gains. European stocks opened higher after Moody’s kept Italy’s sovereign rating stable on Friday instead of cutting it to negative. The decision fuelled a rally in Italian government bonds and boosted shares in the country’s banks. “Moody’s opens the door for a euro bounce, while Chinese verbal support for the economy and markets has given us a risk-friendly mood to start the week,” Société Gén...
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