KEEPING SCORE: The CAC 40 in France edged 0.1 percent higher to 5,472.12 and Britain’s FTSE 100 added 0.1 percent to 7,482.23. Italy’s FTSE MIB gained 0.3 percent to 20,623.32, after a string of losses. German markets were closed for a national holiday. U.S. indexes were poised to open higher. Dow futures gained 0.2 percent to 26,865.00. The broader S&P; 500 futures rose 0.2 percent to 2,935.50.
ITALY’S SPENDING: The Italian newspaper Corriere della Sera reported the government will reduce its budget deficit targets after 2019. It said the deficit will be set at up to 2.4 percent of gross domestic product next year as announced. But it will likely be cut to 2.2 percent in 2020 and 2 percent in 2021. Markets reacted with relief: Italy has the second highest level of debt in the eurozone after Greece. On Tuesday, Deputy Prime Minister Luigi Di Maio insisted the government “will not back up one millimetre” from its new spending plans, despite criticism from other members in the 19-country bloc.
ANALYST’S TAKE: “Given the emotional nature of Italian politics, there will be lots of political manoeuvring ahead of the final decision, so the market will probably be less keen to extrapolate too much out of today’s headline,” Stephen Innes Head of Trading Asia at OANDA said in a commentary.
