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5 Things to Know In the Market Today
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Loading...1. European stock markets shrug off Renzi defeat
European stock markets recovered following early losses on Monday as investors shrugged off Italian voters’ rejection of a constitutional referendum and the subsequent resignation of Prime Minister Matteo Renzi.
The referendum outcome was largely priced in and the European Central Bank has said it is ready to temporarily step up purchases of Italian government bonds should the referendum results drive up borrowing costs.
2. Rescue of Italian lender Monte Paschi thrown into doubt
Shares in Banca Monte dei Paschi (MI:BMPS), Italy’s third largest and oldest bank, slumped as much as 10% in early trading before recovering, amid fears that Renzi’s resignation has thrown the bank’s rescue plans in doubt.
Monte dei Paschi is in the midst of a complex operation to shed €28 billion in bad loans and raise €5 billion as part of a rescue plan to avoid being wound down.
3. Euro rebounds from 20-month low
The euro rebounded from 20-month lows on Monday. The euro tumbled to lows of 1.0507 against the dollar during Asian trade, its weakest since March 2015.
The single currency then retraced those losses and EUR/USD was last 1.0703.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.13% at 100.62 as the stronger euro weighed.
The dollar gained ground against the yen, with USD/JPY rising 0.63% to 114.23.
4. Oil prices hit 16-month highs, Brent above $55
Oil prices rose to fresh multi-month highs on Monday, as hopes that an announced output cut by the Organization of the Petroleum Exporting Countries will help reduce a global supply glut and shore up prices.
U.S. crude oil was trading at $52.21 a barrel at 11.26 GMT, a level not seen since July 2015, up 53 cents or 1.03% from its last close.
5. RBS settles dispute with shareholder groups
Royal Bank of Scotland (LON:RBS) said Monday said it had settled legal claims with a majority of shareholders over allegations that they were misled in the run up to the banks emergency rights issue in 2008.
RBS said it would pay a sum of up to £800 million ($1.02 billion) to bring an end to the legal action.
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