European stock market update

European stocks reacted to the news that Italy’s Prime Minister Giuseppe Conte resigned on August 20. Italy FTSE MIB Index increased by 1.87% on Wednesday morning. It was a critical moment as it was a sign of relief for the local economy. Since the beginning of the year, this index increased by 12% which is good news.

It is up to Italy’s President Sergio Mattarella to decide what to respond to this situation. Prime Minister’s resignation it is not unusual for Italy. President Mattarella has several options, and one of them is to hold the elections.  There are several parties who would like to win the majority of seats in the Parliament.

The political climate used to have a serious influence on the stock market. Any political turmoil could have serious consequence for the stock market. Politicians should be careful not to jeopardize the political situation. Investors and traders know that even small mistakes have the potential to cause considerable damage to the stock market. However, the Prime Minister’s resignation was not the only problem for the European Stock Markets. Another issue which might affect the stock market was UK’s Prime Minister and his comments about the Brexit.

It means that the stock market is under constant observation from investors, traders, etc.

European companies and stock market

The shares of companies, such as Renault rose by 4.82%. Another automaker which gained from this situation was the Fiat Chrysler Automobiles. Moreover, its shares increased by 4.1%. The chance that these two automakers would renew the negotiations after previous negotiations failed remained as of August 21.

The Pan- European Stoxx 600 increased by 0.8%.

Another good news for the European stocks was that shares of Pandora also increased on Wednesday.  The shares of Danish company increased by 10%.

The political climate in Italy, as well as the chance of no-deal Brexit, affected the European stock markets.