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Europe: Shares bounce back on trade talks
[MADRID] European shares bounced back from Monday's drop, which was the largest in three weeks, lifted by a resumption of trade talks. Italy will again be in focus.
The Stoxx 600 Index rose 0.5 per cent, with all the subgroups gaining except for oil shares as President Donald Trump took aim at Saudi Arabia's plan to cut oil production. Telecom Italia Spa rose 3 per cent as its Chief Executive Officer Amos Genish was said to resign.
US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu have resumed talks on trade, and a potential Washington visit by Mr Liu is being considered, helping to ease tariff war concerns. Today is also the deadline for Italy to submit a revised 2019 budget to the European Commission after its first plan was rejected. Local newspaper Il Sole 24 Ore reported that changing the 2.4 per cent deficit target, as the commission has signaled the country should do, is out of the question.
"All seems more calm today," Ignacio Cantos, investment director at ATL Capital in Madrid, said by phone. "The market would very much welcome any gesture from Italy to tone down their plans and come closer to an agreement with the EU."