This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
It is predominantly the Italian banks that have helped push the index higher. Heading towards the close of the European trading day, the Italy 40 is up almost 2.5% compared to the more sedate 1% increases in both the France 40 and the Germany 30. Four of the top five climbers in the index are from the banking sector.
The biggest mover, Unione di Banche, has continued the reorganisation of its business by coming to an agreement with Aviva over the sale of a further 30% stake in two of its life insurance operations. In exchange for this Aviva, the UK based insurer, has agreed to sell its Italian counterpart its holdings in a number of Italian banks for €327 million.
So far in 2014, the 50-day moving average has proven to be particularly supportive and once again the last 48 hours has seen the Italy 40 close above it, even though the intraday is falling below. Assuming the index can continue to close above the 21,000 level and refrain from breaking the 50-DMA, we would hope that a fresh move higher towards the 22,000 level could be achieved.