Italian equities: best European performance in 2017

Italian equities realized best performance in Europe in 2017, FTSE Mib has grown by 14% and it exceeded the other European stock indices as German DAX 30 and French CAC 40. The stabilization of the Italian banking system by internal policy choices has restored confidence for Italian equities and gave a strong impulse for the greatest growth in 2017 in Europe.

FTSE-Mib, best performance in Europe: growth explained

2017 was marked by a very high volume of purchases in the financial markets, the grow of the main equity indices in the world let discuss for a long time about a possible bubble ready to explode, but the strong enthusiasm which led the indices to reach record prices was the effect of the economic recovery and it was the result of positive news from the real economy.

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The signs of the exit from the economic crisis were weak, but clear: increased gross domestic products, reduced unemployment and recovery of trades are elements which supported the purchases in the financial markets.

Larger availability of capital has involved a larger propensity to save and invest, a great propeller for the markets for sure.

The race for purchases on the main European indices had left almost no room to short sales and Italian equities were absolutely the most attractive and most appreciated in the Old Continent.

DAX 30 and CAC 40 had good results too, while British FTSE 100 and Spanish Ibex had lower growths because of the uncertainty caused by Brexit and by requests for independence of Catalonia.

Italy will hold national elections in March the 4th, after President of Republic Sergio Mattarella dissolved the Chambers in agreement with the President of the Council Gentiloni. The vote will prove if the rally of Italian stocks can continue or not, under the influence of a possible political instability.

Francesco Lucchetti