DAX Shows Considerable Gains
European stock markets are trading higher today, as investors are focused on earnings reports and sentiment has improved after last week’s losses. The German DAX stock index jumped by 0.47% to trade at 11.607 level.
Italy’s draft budget is a problem for the European Commission. The Italian government announced that it intends to stick to a high spending budget, despite EU warnings that it is against the rules of the bloc. In response to a letter sent by the European Commission last week, the Italian government announced that it would not abandon its plans, according to which the budget deficit in 2019 would be 2.4% of GDP.
On Friday, Moody's left Italy’s sovereign rating outlook stable, lowering the rating one notch to Baa3. Shares of Italian banks rose, and the yield on Italian debt fell after this decision.
The German Bundesbank has released its regular monthly economic report today. The German central bank’s report showed the German economic growth may have stalled in the third quarter. Still, the economic upswing in Germany is still fundamentally intact and the growth should rebound in the final three months of the year.