Paris: Even as Italian lenders tumbled following a crushing referendum defeat for Prime Minister Matteo Renzi and his subsequent resignation, the broader European market held steady. The Stoxx Europe 600 Index rose 1% at 8.28am in London, as gains in miners and exporters amid a falling euro outweighed declines in banks. Milan’s FTSE MIB Index fell 1.3% for the worst performance in western-European markets.

Traders had boosted Italian shares in the run-up to the vote, sending its equity benchmark to the best weekly performance among developed markets. The bullishness was short lived. The political limbo following Renzi’s resignation adds to what has already been a painful year for the country’s stocks amid a simmering banking crisis, reflected by a drop of 21% in the FTSE MIB in 2016. Bloomberg

Close