European Stoxx 600 index falls, Italian shares rise

The pan-European STOXX 600 index fell for the third consecutive session on Monday on fears of an economic slowdown. However, Italian stocks gained after the victory of the right-wing coalition led by Georgia Meloni in the country’s general elections.

The index fell 0.3 percent by 0713 GMT, extending its losses since last week after euro zone data indicated an economic recession and raised concerns about the central bank’s moves towards monetary tightening.

Shares of the oil and gas sector fell 1.1 percent and the mining sector 2.1 percent, with the decline in crude oil and metal prices due to the rise in the dollar and fears of a decline in demand due to the expected global recession.

Germany’s benchmark DAX index fell 0.1 percent ahead of the September data on business sentiment at 0800 GMT.

However, the Italian index rose 0.7 percent, supported by the gains made by financial shares after the center-right coalition won a clear majority in both houses of parliament in the Italian general elections.

European financial markets will be watching Meloni’s first moves carefully, starting with the selection of ministers, given her skeptical past in Europe and the conflicting positions of its allies on Russia.