European shares rose on Wednesday as Italian banks rebounded on hopes Rome could compromise with Brussels over its budget plans.
The STOXX 600 rose 0.5 percent in early trading, on course to snap a five-day losing streak that pushed the pan-European benchmark close to the nearly two-year low hit last month.
Germany's DAX index rose 0.9 per cent and London's FTSE 100 added 0.3 per cent, reports Reuters.
Italian banks rose 2.5 per cent after a report said Italy’s deputy prime minister Matteo Salvini may be open to review the government’s 2019 budget, fuelling hopes the country could avert a clash with the European Commission.
The broader European banking index was the biggest sectoral gainer in early morning trading, up 1 per cent, while tech stocks advanced 0.4 per cent.
Babcock plummeted 12 per cent. Indivior fell 8.7 per cent after it warned it could take a hit if the rival drug from Dr. Reddy’s Laboratories (REDY.NS) comes to market this year.
Johnson Matthey led gainers on the STOXX, up 8 per cent, after the specialty chemicals company raised its full-year guidance.
