The Canadian Press - ONLINE EDITION

Markets steady as Renzi poised to become new premier; trading subdued on US Presidents Day

  • Print

LONDON - Markets in Europe were steady as exchanges in Toronto and New York were closed on Monday for holidays.

Overseas, investors sought clarity over Italy's political and economic future, now that Italy's President Giorgio Napolitano has asked Matteo Renzi to form a new government.

Renzi, who is the mayor of Florence and poised to be the country's youngest premier at 39 years of age, engineered last week's ouster of Enrico Letta, who had only been Italy's leader for 10 months. Renzi argued a change of government was needed to get on with reforms.

Italy only recently emerged from recession, figures showed last week, but growth remains paltry. Its debt burden is also the second-highest in the 18-country eurozone, behind Greece.

"While political turmoil is nothing new in Italy, the return to growth last week was, but it was meagre at best, and Renzi may not have much of a honeymoon period if all we get is more of the same," said Michael Hewson, senior market analyst at CMC Markets.

By the close, Italy's FTSE MIB index was up 0.1 per cent at 20,459.65, while Germany's DAX fell 0.1 per cent to 9,65.76. The CAC-40 in France ended 0.1 per cent lower at 4,335.17.

The FTSE 100 in Britain outperformed its counterparts, closing 1.1 per cent higher at 6,736.00, gaining momentum as it broke through the 6,700 level for the first time in over 3 weeks.

"It is not often that Europe struggles to keep pace with the bullish moves of U.K. traders, but today looks to be that exception to the rule," said Alastair McCaig, market analyst at IG.

One reason why trading has proved lacklustre in Europe is the fact that U.S. markets are closed for Presidents Day.

There was an equally subdued feel in currency markets, where the euro was flat at US$1.3707 and the U.S. dollar fell 0.2 per cent to 101.30 yen.

Earlier, in Asia, the mood was a little bit more upbeat, after figures showed that lending by Chinese banks and in the largely unregulated underground market rebounded to 2.6 trillion yuan ($430 billion) in January from December's 1.2 billion yuan. Lending usually surges at the start of a new year but January's rise exceeded forecasts and might help to ease worries about cooling retail sales, manufacturing and other activity.

Among the gainers was the Shanghai Composite Index, which added 0.9 per cent to 2,135.41. Japan's Nikkei 225 gained 0.6 per cent to 14,393.11 while Hong Kong's Hang Seng rose 1 per cent to 22,520.74.

Tokyo's rise came despite Japan's latest quarterly economic growth disappointing forecasters, holding steady at 0.3 per cent. Growth in private consumption accelerated to 0.5 per cent from the previous quarter's 0.2 per cent but fell short of forecasts.

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Family of Matias De Antonio speaks outside Law Courts

View more like this

Photo Store Gallery

  • A goose flys defensively to protect their young Wednesday near Kenaston Blvd and Waverley -See Bryksa 30 Day goose challenge- Day 16 - May 23, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • June 25, 2013 - 130625  -  A storm lit up Winnipeg Tuesday, June 25, 2013. John Woods / Winnipeg Free Press - lightning

View More Gallery Photos

Poll

Now that the snow is mostly gone, what are your plans?

View Results

Ads by Google