European markets higher after global equity sell off

European stocks were higher Wednesday morning, clawing their way back from sharp losses sustained in the previous session. The pan-European Stoxx 600 was up around 0.5 percent during mid-morning deals, with most sectors and major bourses in positive territory.

Europe’s banking index was among the top performers Wednesday morning, up more than 1.2 percent amid support from Italy’s notoriously fragile lenders. Banco BPM, Ubi Banca and Intesa Sanpaolo all surged higher amid reports the country’s Deputy Prime Minister, Matteo Salvini, could be prepared to review the government’s 2019 budget. Italy’s FTSE MIB index rose nearly 1 percent on the news. However, Italy’s Lega party, which makes up part of the coalition government in Italy and which Salvini leads, denied that he’s seeking budget changes.

The European Commission is scheduled to take the first step toward disciplining Rome over its contentious draft fiscal proposal on Wednesday.

Back in Europe, U.K. Prime Minister Theresa May is expected to make an appearance in Brussels, as she discusses Brexit developments with the President of the European Commission, JeanClaude Juncker. The British leader is currently facing broad criticism from across the political spectrum, amid lingering concerns she could soon face a vote of no-confidence.

The EU is due to hold a summit to discuss Britain’s proposed deal on Sunday. If the 27 remaining member states agree to sign off on the draft agreement later this week, the British government would then have to win over lawmakers at a crucial vote in early December.

Asian stock markets mostly fell early but improved from the worst levels of the day, including a flip to positive territory in Hong Kong, as the region’s trading tracked the drubbing Tuesday for U.S. stocks and oil futures. Both equities and oil markets indicated a Wednesday rebound was in order. Japan’s Nikkei was down 0.4%, moving close to its lowest point in a month as energy and electronics stocks slid.

This article was compiled by BOV Asset Management Limited, a member of the BOV Group. BOV Asset Management,TG Complex, Suite 2, Level 3, Brewery Str., Mriehel BKR 3000. Email: infoassetmanagement@bov.com Internet address: www.bovassetmanagement.com. BOV Asset Management is licensed by the MFSA.