6/1/2018, 5:31 PM (Source: TeleTrader)
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Europe closes higher as Italy gets government

Markets in Europe closed significantly higher on Friday with financials leading the gains as investors focused on political developments in Italy and Spain. Giuseppe Conte was sworn in as the Italian prime minister who will lead the country's new populist coalition government. Meanwhile, Spanish Prime Minister Mariano Rajoy was ousted in a parliamentary vote and is set to be replaced by Socialist Workers' Party leader Pedro Sanchez, who led the no-confidence motion as a result of corruption allegations against Rajoy's Popular Party.

Italy's FTSE MIB surged 1.49% as banks pushed the index higher. Banco BPM rocketed 8.45% and BPER Banca soared 7.87%. Ubi Banca, Banca Generali and Unicredit also ended the session with sharp gains.

In Spain, the IBEX 35 closed 1.56% in the green. Acerinox climbed 3.56%, while banks including Banco Santander and Banco de Sabadell added about 3%.

The FTSE 100 added 0.31%. Chemicals firm Johnson Matthey led the gains, increasing 3.42%, while mining companies also recorded strong performances.

The CAC 40 gained 1.19% as Schneider Electric and Credit Agricole added 3% and the DAX rose 0.95% with Commerzbank jumped 4.83%.

Baha Breaking News (BBN) / NP