This translation has been automatically generated and has not been verified for accuracy.European stocks opened higher on Wednesday as hopes for more monetary and fiscal stimulus helped assuage worries about global recession, political turmoil in Italy and endless trade wars.
Futures are fully priced for a quarter-point cut in rates next month and cuts of more than 100 basis points by the end of next year. With so much riding on the Fed, investors were cautious and volumes subdued. The Euro STOXX 600 was 0.6 per cent higher, with Italy outperforming after a rout yesterday following the resignation of Italian Prime Minister Giuseppe Conte.
Shortly afterward, the U.S. government approved an $8 billion sale of Lockheed Martin F-16 fighter jets to Taiwan, a move sure to draw Beijing’s ire and further dim prospects for a trade deal.Italian bond yields steadied after falling on Tuesday, as Italian President Sergio Mattarella begins two days of talks that will lead either to formation of the country’s 67th government since World War Two or to early elections.