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Italian stocks fall on budget concerns, FTSE gains

Published 28/05/2019, 08:32
Italian stocks fall on budget concerns, FTSE gains
UK100
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IT40
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STLAM
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RENA
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STOXX
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SXAP
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(For a live blog on European stocks, type LIVE/ in an Eikon
news window)
May 28 (Reuters) - Italian stocks fell more than half a
percent on Tuesday, pulling European stock markets lower, as
concerns about the country's budget deficit overshadowed news of
talks on a merger of Fiat-Chrysler and Renault .
By 0725 GMT, the pan-region STOXX 600 .STOXX was roughly
flat, undoing earlier gains, while Milan's bank-heavy FTMIB
.FTMIB index fell 0.6%.
Sources told Reuters on Monday that the European Commission
was likely to start disciplinary procedures against Italy next
week for breaking European Union debt rules, pushing bond yields
higher and adding to worries for banking creditors. London's FTSE 100 .FTSE , however, rose 0.3% as mining
company shares gained on the back of a rise in Chinese iron ore
prices.
In a light day on corporate news and absent new headlines on
U.S.-China trade issues, auto stocks .SXAP built on Monday's
gains on hopes of a Fiat Chrysler FCHA.MI -Renault RENA.PA
merger. Both car makers climbed more than 1%.
French Finance Minister Bruno Le Maire said France must
protect its own interests and jobs in any merger between the tow
companies, even though France's stake in Renault would
automatically be diluted.

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