Italian crisis drags European markets down

The European stock markets took a step back on Friday, following the strong price recovery a day earlier. The political crisis in Italy caused restraint among investors and put pressure on Italian banks in particular. Furthermore, attention continued to be focused on the Sino-US trade conflict.

The AEX index recorded 0.7 percent in the minus at 545.29 points around noon. The MidKap fell 1 percent to 815.21 points. Paris and Frankfurt lost 0.8 percent. The London FSTE fell 0.3 percent after an unexpected contraction in the British economy.

The main index in Milan fell 2.4 percent. The Italian banks UniCredit and Ubi Banca fell by more than 5 percent. The Italian Deputy Prime Minister and Minister Matteo Salvini wants new elections to be held. He has informed Prime Minister Giuseppe Conte that the coalition of the Lega and the M5S (Five Star Movement) has no future.

ABN AMRO (min. 4.2 percent) listed ex-dividend for the main funds on the Damrak. Unilever and AkzoNobel were the only risers with profits of 0.3 and 0.1 percent. In the MidKap maritime service provider SBM Offshore was at the bottom with a loss of 3.8 percent. The strongest climber was navigation company TomTom with a plus of 0.6 percent.

In London, WPP increased nearly 7 percent after a positive half-year report. The advertising company let it be well on track with its ongoing reorganization. G4S won 4.4 percent. The British security company stops transporting and processing cash. That division, which is also active in the Netherlands, will be split off next year and continued in a separate company.

Bayer rose 6 percent in Frankfurt. The chemical giant is reportedly willing to pay up to $ 8 billion to reach a settlement in thousands of US lawsuits because of the weed killer Roundup. Innogy energy company fell 1 percent in Frankfurt. The German parent company of Essent saw gross profit fall sharply in the first half of the year.

The euro was worth $ 1,1202, against $ 1.1213 a day earlier. A barrel of American oil was 0.5 percent higher at $ 52.79. Brent oil rose 0.7 percent in price to $ 57.76 per barrel.