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Italian banks help European shares snap losing streak

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Italian banks help European shares snap losing streak

Italian banks help European shares snap losing streak
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KAI PFAFFENBACH(Reuters)
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MILAN (Reuters) - European shares rose in early deals on Monday after Moody's decision to keep Italy's sovereign rating stable eased worries over a sell-off in the country's government bonds, boosting shares in Italian banks.

Italian banks, which are heavily exposed to government bonds, rose more than 3 percent, driving European banks <.SX7P> higher and helping the pan-European STOXX 600 <.STOXX> index rise 0.4 percent following three straight days of losses.

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Autos <.SXAP> were also in demand with Fiat Chrysler <FCHA.MI> gaining 4.3 percent after the Italo-American car maker agreed to sell its Magneti Marelli unit in a 6.2-billion-euro ($7.16 billion) deal. A pledge from German Chancellor Angela Merkel to ward off diesel driving bans gave to support to German carmakers.

Salvatore Ferragamo <SFER.MI> topped the leader board, rising 7 percent and hitting a one-month high after Wanda Ferragamo, the honorary president and shareholder of the Italian shoemaker died at the age of 96.

Philips <PHG.AS> was a weak spot, down 5.2 percent, after core profit growth at the Dutch healthcare technology company missed analyst estimated, partly due to currency headwinds.

Ryanair <RYA.I> rose 3.2 percent even after it reported a 7-percent fall in profit during its key April-September season on Monday and said European short-haul airfares would remain soft this winter. Traders said there were no negative surprises in the airline's results following the recent profit warning.

(Reporting by Danilo Masoni; editing by Josephine Mason)

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