Main topics of the day in the markets of Europe: the elimination of two regional banks in Italy, buying a 1% stake in Nestle hedge Fund Third Point LLC



Leading stock indexes of Europe on Monday, grow, reacting to the positive dynamics of shares of the banking sector, supported by news of the deal to rescue the assets of two regional banks in Italy.

By 13:45 GMT the pan-European Stoxx Europe 600 rose 0.8%, compared with yesterday’s closing level against the background of rising British FTSE-100 index at 0.7%, the German DAX down 0.8 PCT, France’s CAC 40 down 1.1%.

On Sunday, Italian authorities announced the readiness to spend 17 billion euros on the treatment of assets by closing two regional banks Banca Popolare di Vicenza and Veneto Banca. The “good” assets of these banks will be transferred to the Bank Intesa Sanpaolo for a nominal price. Two days earlier the European Central Bank warned that Banca Popolare di Vicenza and Veneto Banca mote to fail. The Intesa Sanpaolo to the current point rose by 4.2%.

Postcode sectors producers and sellers of food and beverages rose by 1.7% amid reports that hedge Fund Third Point LLC, under the management of Daniel Loeb acquired over 1% stake in the Swiss company Nestle for 3.28 billion Swiss francs. This was a record investment in equities by private hedge funds. Shares of Nestle to the current time increased by 3.8%.

Additional support for the stock markets had a message of the Ifo Institute on the increase in the index of business sentiment in Germany in June to a record high of 115.1.

Oil prices this morning rose by almost 1% in the absence of fundamental factors. According to analysts, traders covered short positions in oil futures near the November low of $ 43 per barrel. (WTI), believing that this level will become support. Later, however, the situation in the oil market deteriorated again.

The current August contract for crude oil rose by 0.4% in comparison with level of Friday’s close, reaching $ 43.19 per barrel. The August futures for Brent oil rose by 0.15% to $ 45.63 per barrel.

At the moment the oil price is 13% below the levels recorded at the end of may, when the OPEC countries and partners extended the agreement to reduce oil production to 1.8 million barrels. a day. The agreement is valid until the end of March next year. Pressure on the market by reports of continued expansion of oil production in the United States.

Among the political news of the day – the expected performance of the consultant Brexit David Davis, who will announce plans for Britain to support the rights of citizens of other European countries, with the UK out of the EU. Davis will likely offer a mirror to achieve agreement on the protection of the rights of British citizens living in the EU.

Also today, the EU and Mexico intend to discuss renewal of the expiring free trade agreement (Free Trade Agreement).

Prepared using materials MarketWatch and CNBC.




Main topics of the day in the markets of Europe: the elimination of two regional banks in Italy, buying a 1% stake in Nestle hedge Fund Third Point LLC 26.06.2017

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