Italy’s Monte dei Paschi di Siena failed to open with the rest of the market Monte as shares have been suspended, after plunging more than 6%. This follows the bank’s admission yesterday that its private 5-billion-euro recapitalization had failed. The Italian state is now gearing to rescue the ailing lender by providing a 20-billion-euro boost aid. The world’s oldest bank is rapidly running out of time as it has only managed €2 billion thus far, while key Qatari investors chose not to invest a €1 billion chunk. The news that the MPS is heading for a bailout has begun to drag on the rest of the European banking sector, with Deutsche Bank, Barclays and Lloyds sliding along the charts.
European markets started the day lower as trading desks began to thin out on the last full day of market activity for London’s financial sector ahead of the long Christmas break. In today’s E.U. markets, most major indices traded flat to lower with Germany’s DAX trading virtually unchanged at 11464.75, U.K.’s FTSE slipping 0.1 percent at 7031.30, France’s CAC edging 0.1 percent at 4838.50 while the Euro Stoxx 50 added 0.1 percent to last trade at 3273.50 as of 9:15 GMT.
Chinese shares ended the day moderately lower on fears of liquidity crunch in the wake of a recent bond scandal and amid thinner pre-holiday trade. In today’s Asian Markets, Japan’s Nikkei ended the day 0.1 percent lower at 19427.67, Australia’s S&P/ASX 200 added 0.5 percent to close at 5643, ChinaA50 lost 0.3 percent to close at 9984.17 while Hang Seng slipped 0.8 percent to end the day at 21635.00. India’s Nifty 50 is also heading for a bearish close, having lost 0.9 percent for the day to last trade at 7987.70 as pf 9:15 GMT.