Italian Exit Polls Suggest Luigi Leading Berlusconi

Barry Randall
25 Feb, 2013
New York City

Stocks across Europe soared and banks in Italy jumped more than 3% after early exit polls indicated results favored by markets. 2010 Gulf of Mexico oil spill trial against the BP Plc began in the U.S. and the company is also engaged in settlement talks with state governments.

[R]3:30 PM Frankfurt – Stocks across Europe soared and banks in Italy jumped more than 3% after early exit polls indicated results favored by markets. 2010 Gulf of Mexico oil spill trial against the BP Plc began in the U.S. and the company is also engaged in settlement talks with state governments.[/R]

European markets extended gains after preliminary exit polls in Italy suggested center-left party leading the senate and lower house of the parliament.

In London trading, FTSE 100 index gained 0.5% or 32 to 6,368 and in Frankfurt, the DAX index jumped 2.3% or 173.8 to 7,836. In Paris, CAC 40 index advanced 1.8% or 66.6 to 3,773.

Market index in Italy gained 1.8% and banks soared more than 2.5% on the prospect of left party winning the election.

Preliminary exit polls late afternoon showed that center-left coalition led by Pier Luigi Bersani is leading with 34.5% and former Prime Minister Silvio Berlusconi led center-right group trailing second with 29%.

Five Star movement led by Grillo with 19% and technocratic leader Mario Monti trailed with 9.5%.

The race for the Senate is much tighter between the two leading parties.

BP Plc was in focus after the company faced a trial in the U.S. courts over the Gulf of Mexico oil spill today. The company is also engaged in settlement talks with the states of Florida, Alabama and Louisiana of as much as $13 billion according to 123jump.com sources familiar with talks between state government of Alabama and the company.

Stocks in Review

Deutsche Boerse AG jumped 9% to €51 after the media reports that the operator of exchanges was approached by the CME Group to initiate the merger talks.

Pearson plc declined 5.5% to 1,148.64 pence after the UK based media and education group said business conditions are expected to be tough in the current year and guided flat operating earnings.

PostNL NV soared 7% to €1.96 after it reported operating earnings for the fourth quarter of €219 million ahead of expectations set by several analysts of €146 million.

RP Management LLC offered to buy Ireland based biotech firm Elan Corp. for about $6.5 billion. Elan Corp soared 8% to €8.60 on the unsolicited offer.

Reckitt Benckiser Group Plc plunged 4% to 4,349 pence after the U.S. drug regulator approved generic production of Suboxone tables to treat heroin addiction.

Volkswagen AG gained 0.5% to €157.15 after the German automobile maker met earnings and revenues expectations for the year.