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Italian stocks erase gains on banking concerns

FXStreet (Mumbai) - The Italian stock markets have almost erased their entire gains due to the weakness in the banking sector stocks. Moreover, the Italian banking sector is on the defensive after it emerged as the standout leader in the health checks conducted across Europe.

The Ftse Mib is trading 0.05% lower at 19483, after having failed to capitalize on the initial start which saw the index trading at 19,765 levels. The index breadth is positive with an advance decline ratio of 21:17. The index has been pressurized by a 15% fall in Banca Monte dei Paschi di Siena stock, which emerged as the biggest failure in the stress test. Overall the banking stocks are trading 0.35% lower today. Meanwhile, the media and the retail stocks have shed 0.77% and 0.90% respectively.

Ftse Mib Technical levels

The index has an immediate support at 19,400, below which prices can fall to 19,216 levels. On the flip side, the index may rally to 19,834 levels if the resistance of the day’s high - 19,765 – is taken out.

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