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Italy coalition deal helps drive gains for European stocks

Credit: Reuters Studio
Published on August 29, 2019 - Duration: 01:19s

Italy coalition deal helps drive gains for European stocks

Italy led the way higher for European stocks Thursday amid optimism that a fiscally prudent new government would be formed.

Julian Satterthwaite rounds up the day's market moves.

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Italy coalition deal helps drive gains for European stocks

A political breakthrough in Rome helped lift European stocks on Thursday.

Italy's president giving his backing to a new governing coalition.

Prime minister Giuseppe Conte will lead an alliance of the 5-Star Movement and the opposition Democratic Party.

(SOUNDBITE) (Italian) ITALIAN PRIME MINISTER, GIUSEPPE CONTE, SAYING: "The country is in a very delicate phase.

We must get out of the political uncertainty triggered by the government crisis as soon as possible." Investors saw the move as raising hopes of a fiscally prudent new government.

The new coalition sidelines League leader Matteo Salvini, who has relished clashing with Brussels.

Italian stocks led Europe higher following the news.

They were up about 2 percent by early afternoon.

The relief also drove gains in London, Paris and Frankfurt.

Key indexes there up by one percent or more.

China helped add to the positive sentiment.

That after Beijing said it and Washington were in talks about talks.

The news saw China's Yuan snap its ten-day losing streak.

Then there was a shocking lack of shocks from Britain's Brexit drama.

Sterling steady after its big falls the day before, when news broke of plans to suspend parliament.

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