How to buy, sell and trade Italian stock market
Italian stocks have had a rough few weeks, with Italian shares dropping by more than 10% on Thursday, but some analysts are now saying that the Italian market could be a winner in the long run.
“The Italian market has a lot of room for growth, and it’s going to be a great opportunity for investors,” says James D. Daley, managing director at S&P Capital IQ, a market-research firm.
“The Italian economy is starting to recover and is looking to grow again, so I think there’s plenty of room to go for the long haul.”
Daley, who was also an adviser to the Clinton administration, says the Italian economy could be “the most important driver” for the U.S. economic recovery, particularly if President Trump does not act to reverse the economic slowdown.
Daly says investors should be wary of buying Italian stocks in large enough quantities, because they are likely to lose value in the short term.
Italy has been the world’s second-largest economy for almost three decades, and has seen its GDP grow by 5% in 2017.
Investors have also been concerned about Italy’s debt-to-GDP ratio, which stands at more than 100%, and fears that Italy may be unable to repay the money it owes to the European Central Bank, the central bank of the euro zone.
Italian stock markets have been on a tear in recent months.
On Friday, the benchmark DAX stock index rose 1.4%, and S&s Nikkei futures index jumped 2.6%.
But Italian shares have been hit by a wave of investor panic that has swept through the country, with investors rushing to the market in recent days.
In an interview with the Wall Street Journal, Daley says Italian investors have been “on a roller coaster ride” and that investors have become too scared of a possible default on the country’s debts to the ECB.
Despite the financial crisis, the Italian government has remained in control of the economy, Daly said.
As a result, Italian companies have been able to keep their businesses going while the country recovers.
The DAX index of the countrys largest stock indexes closed higher Friday, while the Nikkeis index of smaller Italian shares closed down 1.2%.
The Nikkeys also closed lower Friday, down 4.2% in early trading.
At the same time, Italian shares fell in other markets, including the Berliner Zeitung and the FTSE 100.
European stocks were down more broadly, with the S&ams DAX down 4% and the Berenberg DAX 1.7%.
Italian stocks are also down against the dollar, which is up 1.3%.
Italy is a key trading partner for the European Union, which has been struggling to deal with the fallout from the financial and economic crisis in Europe.
Europe is struggling to keep its banking sector afloat amid a growing number of countries cutting back on public spending, with Italy leading the way.
But the EU is also facing a financial crisis in Greece, with Greek banks already underperforming and the country at risk of defaulting on loans, according to The Guardian newspaper.
Greek Prime Minister Alexis Tsipras said Friday that the country would not repay its debts to international creditors unless a deal is reached in the coming weeks.
Greece and Italy are the two largest economies in the EU, but the two countries have been wrangling over the issue of Greece’s debt.
After months of negotiations, Greece agreed in November to return to the euro.
EU leaders agreed in July to reduce their borrowing limits in an attempt to stem the economic damage caused by Greece’s bailout.
According to The Wall Street Review, the European Commission is currently negotiating with the country to help resolve the issue.
A new government is in place, but Greek President Yanis Varoufakis, who led a Syriza party that took power in late 2015 after the election of a leftist-led government, has been unable to negotiate with the European leaders, leaving the country stuck in an inconclusive political limbo.
Some analysts say that a deal could be reached before the end of this week.
However, a new government that is more popular than the current one could lead to a more favorable deal, analysts say.
While some analysts have been pessimistic about the Greek situation, they say it’s still too early to say what a new Greek government will be able to achieve.
One potential outcome could be the establishment of a new coalition government, analysts note.
Meanwhile, Italy’s stock markets fell on Friday, with both the DAX and Nikkeith index dropping 2%.
On Thursday, the Dow Jones Industrial Average and Sberbank indices of Italy’s largest companies also dropped, both dropping more than 1%.