Europe: Stocks rally at open

[LONDON] European stock markets rallied at the start of trading on Monday, with Milan up nearly 2.0 per cent despite Moody's cutting Italy's credit rating on high debt concerns.

London's benchmark FTSE 100 index grew 0.4 per cent to 7,081.06 points compared with the close on Friday.

In the eurozone, Frankfurt's DAX 30 index jumped 1.0 per cent to 11,665.68 points and the Paris CAC 40 won 0.9 per cent to 5,130.29.

The Milan FTSE MIB index surged 1.8 per cent to 19,428 points, despite Moody's ratings agency on Friday downgrading Italy on concerns about its populist government's plans to increase public spending, a move heavily criticised by the European Union.

The downgrade - from Baa2 to Baa3 with a stable outlook - is the latest move by international financial watchdogs sounding the alarm over Italy's economic health.

AFP