Stocks see hope as EU softens stance on Italy

European stocks saw a much-needed glimmer of hope as the European Union struck a conciliatory chord toward Italy’s budget.

An EU official said it won’t interfere with Italy’s economic policies, helping to reverse a slide in Italian assets, just as investor worries over EU opposition to the country’s aggressive budget were coming to a head.

The Stoxx Europe 600 was up 0.2 per cent as of 4:09pm CET. On the week, the European benchmark is up 0.9 per cent, set for its first week of gains in a month.

With the Italian picture improving, banks also clawed back losses yesterday.