Europe opens lower with Brexit, Italian budget in focus

Friday, 28. September 2018 09:05

European stock markets opened lower on Friday amid political and economic uncertainties on the continent. The Italian government coalition agreed to raise the budget deficit to 2.4% over protests of its economy minister Giovanni Tria and warnings from the European Union that Italy must decrease its debt. Worries persist over the United Kingdom's leaving the EU, as the deadline for a Brexit deal draws nearer and the two sides remained deadlocked on several key issues. On Thursday, British Foreign Secretary Jeremy Hunt said his cabinet's Chequers proposal, rejected by the union, is still the basis of an agreement, although he added some points could be renegotiated. Meanwhile, UK's consumer confidence weakened in September, while German unemployment rose by 1.3% in August on a yearly basis. Data reports on the UK's GDP and EU inflation are coming up later in the day.

The FTSE 100 started 0.23% lower. EasyJet Plc lost 1.92% following its quarterly earnings report.

The DAX dropped 0.42% at the start of the day. Commerzbank AG decreased 2.67%.

The CAC 40 began the session 0.49% in the red. Publicis Groupe SA led the losses with 1.97%.

The Italian FTSE MIB declined 1.22%, with UBI Banca plummeting 4.88%.

The euro traded 0.14% lower against the dollar and sold for $1.16244 at 9:01 am CET, while the pound was just 0.06% lower compared to the dollar and went for $1.3072.

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