European shares boosted by new Italian government

Business & Markets 2013
Written by Reuters
Monday, 29 April 2013 15:12
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LONDON (April 29): European shares rose on Monday, building on last
week's steep advance after an Italian coalition government was named,
halting two months of political uncertainty that has taken its toll on
equities.
The FTSEurofirst 300 was up 0.4 percent at 1,201.62 by 0710 GMT,
having jumped 3.7 percent last week fuelled by expectations for an
interest rate cut by the European Central Bank after weak macro data
including falling German business confidence.
Italy's FTSE MIB, meanwhile, added 1.3 percent after Italian centre-left
politician Enrico Letta was sworn in as Italy's new prime minister over
the weekend.
"It's a positive development.. (but) I'm not constructive on European
equities," Michael Hewson, analyst at CMC Markets, said, citing a weak
European economic outlook.
"They're still well below the highs... and to be quite honest, while you
could argue that Italy's got some scope to go up, that's only because
it's been sold off."
Italian shares have been underperforming this year, with the MIB up 1.8
percent year-to-date, while the FTSEurofirst300 is up 5.5 percent, as
February's inconclusive election revived worries over the pace of
economic reforms for the debt-stricken country. - Reuters