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European Stocks Appreciate Amid Italy’s Budget Worries

By Investors Hub

European stocks have moved to the upside on Tuesday amid reports of a compromise on Italy’s budget among the government coalition members.

Analysts say that the country will not walk off the European Union, despite pressure to announce populist measures that will require billions in additional spending.

Investors are also looking ahead to the upcoming Federal Reserve meeting for clues about future rate increases.

While the U.K.?s FTSE 100 Index has climbed by 0.6 percent, the German DAX Index and the French CAC 40 Index are up by 0.2 percent and 0.1 percent, respectively.

Dutch financial services company Aegon NV has jumped after the company announced it expects a one-time benefit to capital generation of approximately $1 billion as a result of the merger of two legal entities.

Italian high-tech firm Leonardo has also rallied after reaching a deal with the U.S. Air Force.

Next Plc shares have soared after the company posted strong first-half trading results and raised its full-year profit estimate.

Commodity trading and mining company Glencore has also jumped after lifting its share buy-back program by an additional amount of up to $1 billion.

Meanwhile, British American Tobacco shares have fallen after the company named a new CEO.

Evonik Industries has also moved lower in Frankfurt after RAG-Stiftung announced the successful placement of a total 16.314 million shares of the company for a price of 30.65 euros per share.

On the economic front, French manufacturing sentiment deteriorated in September, survey results from the statistical office Insee showed.

The manufacturing sentiment index fell to 107 in September from 110 in August. This was the lowest score since March 2017 and well below the forecast of 109.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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