A tale of two crises: London and Milan stocks diverge

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Italy's stocks are ending August on a high after the formation of a new coa...

LONDON - Italy’s stocks are ending August on a high after the formation of a new coalition government, while Britain’s equity market is heading for one of its worst months since before it voted to leave the European Union more than three years ago.

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, August 29, 2019. REUTERS/Staffhit its highest since Aug. 1 on Thursday as investors welcomed news that two former feuding parties, the 5-Star Movement and opposition Democratic Party , agreed to form a government.

The pact ended a chapter of the latest political drama to grip Italy’s financial markets, averted a snap election and reduced the chances of another budget showdown with Brussels. Hopes of a deal had spurred a 4% rise in the Milan index over the past week, making it the best performing major international bourse. It is on track for a 0.3% drop for the month.

 

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