European stocks bounce back on Italy relief, China growth worries linger
Emerging market stocks were a bright spot after far-right candidate Jair Bolsonaro, expected to have a pro-business stance, won Brazil’s election
London — Concern over China’s slowing economy dented US stock futures and kept world stocks under pressure on Monday although European shares climbed thanks to encouraging earnings reports and relief that Italy dodged a ratings downgrade. The euro, however, fell to a session low after a senior party source said German Chancellor Angela Merkel would not seek re-election as party chair after bruising losses for her Christian Democrats in a regional election in Hesse. Germany’s DAX was up 0.7% by 9.29am GMT while the leading index of euro zone stocks rose 0.5%, boosted by a weaker euro. Italy’s FTSE MIB led the market with a 1.5% gain after Italian bond yields fell sharply to a one-week low following Standard & Poor’s decision to leave Italy’s sovereign rating unchanged, sparking relief there was no ratings downgrade. This also boosted Italian bank stocks up 2.7%. Despite gains on Monday, investors remained wary of betting the farm on a turnaround in risk. “The only way I can summarise...
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