European shares open mixed as Italy anxiety cools

European shares opened mixed Thursday morning, as elevated concerns over Italy’s deepening political crisis showed signs of abating.

The pan-European Stoxx 600 was flat shortly after the opening bell, with sectors and major bourses pointing in opposite directions.

In Asia, equities bounced back from a two-month low Thursday. MSCI’s broadest index of Asia-Pacific shares, excluding Japan, was up around 0.5 percent, after recovering from its weakest level since the start of April in the previous session.

Back in Europe, stocks in Italy- the epicenter of the latest market turmoil- rebounded more than two percent Wednesday, amid signs of fresh talks between two of Rome’s anti-establishment parties.

Global financial markets were roiled earlier in the week, after two of Italy’s euroskeptic populist parties abandoned plans to form a coalition government. That effectively raised the likelihood of a new general election and stoked fears such a vote could be framed as a de facto referendum on the country’s euro membership.

However, alongside fresh coalition talks, the successful sale of five-year and 10-year government bonds Wednesday also alleviated worries about Italy’s ability to finance itself.

On the data front, flash euro area inflation data for May is expected to be released at around 10 a.m. London time.

Source: CNBC