DAX 30 Down as European Equities Fall on Eve of Italian Referendum

Share On Facebook
share on Linkedin

The DAX 30 is down just under 1% at lunchtime today with markets waiting for U.S. jobs data announcements and this weekend’s referendum on constitutional reform in Italy. Current polls show the ‘yes’ vote, backed by Prime Minister Matteo Renzi was behind in the latest opinion polls, 46.5% to 53.5%. However, the polls also showed that 20% of voters are as yet undecided and it is thought that many of those are likely to back Renzi in the end. The proposed reforms would mean that proposed laws would only need to be approved by the lower house of parliament, taking power away from the Senate. Currently, both houses must give approval for a new law to be passed.


The greatest consequence of a failure by Remzi to win the vote is considered to be the danger that the country’s banking sector is in. According to a report in CNCB:

“Officials and senior bankers….anticipate that up to eight of Italy’s troubled lenders are at risk of failure should Renzi lose the upcoming referendum.

Megan Greene, chief economist at Manulife Asset Management, believed that the referendum in Italy could provoke another banking crisis in Europe”.

It is this scenario, rather than the political changes, which is worrying equities markets around Europe today. Deutsche Bank is down 1.59% and the more European-focused Commerzbank 2.22%. Insurer Allianz is down 0.97%. Corporate software company SAP is down 2.09% after technology stocks suffered a downturn in the U.S. on Thursday, a trend which continued over to Asia’s Friday session. Siemens is also down 1.46%. Carmakers BMW, Daimler and Volkswagen are also all down so far on Friday with respective losses of 1.37%, 0.5% and 1.54%.

The only two companies on the DAX enjoying a positive Friday so far are Adidas, the sportswear giant up 0.22% and energy company RWE holding onto a tiny 0.04% gain by its fingernails.

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

This article was provided by Windsor Brokers. Click here for more information.

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

Leave A Reply

Do you want to write for our Newspaper? Get in touch: newspaper@advfn.com

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V: D:20200919 06:32:58