European shares jumps on ministers’ euro promise

Published: June 11, 2018 15:41:10 | Updated: June 13, 2018 11:22:31

European shares jumped on Monday after Italy’s new economy minister promised to keep the country in the euro.

Euro zone banks rose 1.5 per cent, helping the pan-European STOXX 600 gain 0.4 per cent while Italy's FTSE MIB jumped 2.0 per cent and Spain's IBEX 0.9 per cent.

Italian bank stocks climbed 2.1 per cent as bond yields fell, reports Reuters.

Italian banks Unicredit and Intesa Sanpaolo led the European index, up 4.5 and 4.2 per cent respectively.

Italgas and Poste Italiane, which had been weighed down by political uncertainty, also made strong gains.

Swiss voters' rejection of a campaign to radically alter the banking system also helped boost the sentiment. Switzerland's stock index was up 1.1 per cent with banks Credit Suisse and UBS leading gains.

Swiss consumer goods heavyweight Nestle was the biggest boost to the STOXX 600, up 1.3 per cent.

Top of the STOXX 600 was Inmarsat, surging 12.8 per cent to a five-month high after it rejected a takeover offer from US firm Echostar.

Ocado shares rose 2.1 per cent after Bernstein analysts gave the British online grocer a double upgrade to “outperform” and Goldman Sachs analysts upgraded it to a “buy”.

The stock is already up 152 per cent this year, boosted most recently by a distribution deal with US supermarket Kroger.

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