Commodity stocks drag Europe’s STOXX 600 lower; Italian shares rise

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 23, 2022. REUTERS/Staff

Sept 26 (Reuters) – Europe’s STOXX 600 index slipped for the third straight session on Monday on worries about an economic downturn, although Italian shares outperformed after the right-wing coalition led by Georgia Meloni looked set to win the country’s general election.

The continent-wide STOXX 600 index (.STOXX) was down 0.3% by 0713 GMT, extending a rout from last week after dismal euro zone data pointed to an economic downturn and added to worries over hawkish central bank moves.

Oil and gas (.SXEP) and mining (.SXPP) stocks fell 1.1% and 2.1%, respectively, as crude and metal prices dropped due to a surging dollar and fears of lower demand from an expected global recession.

Germany’s main index (.GDAXI) dipped 0.1% ahead of September business sentiment data at 0800 GMT.

However, Italy’s FTSE Mib index (.FTMIB) rose 0.7%, led by gains in financial stocks, after the centre-right coalition won a clear majority in both houses of parliament in Italy’s general elections.

European financial markets will carefully scrutinize Meloni’s early moves – starting from her ministerial picks – given her eurosceptic past and her allies’ ambivalent position on Russia. read more

Reporting by Devik Jain in Bengaluru; Editing by Saumyadeb Chakrabarty

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