Exchanges in Europe closed in negative territory before the referendum in Italy

Биржи Европы закрылись в минусе перед референдумом в Италии

Major stock indexes in Europe ended the first day of the work week lower on uncertainty ahead of the referendum on the constitutional reform in Italy and presidential elections in Austria, according to the auction.

At the end of trading the British FTSE 100 fell 0.60% to 6799,47 points, French CAC 40 — on 0,88%, to 4510,39 points, German DAX — on 1,09%, to 10582,67 points.

A referendum in Italy on constitutional reform will take place on 4 December. Government bill, first of all, changing the role and functions of the Senate (the upper house of Parliament), was considered in the national Parliament for almost two years and was finally approved by April 12, 2016. The Italian court of cassation on 8 August recognized the legality and admissibility requirements of holding a referendum on this reform.

On the same day, 4 December, Austria will host the repeated second round of presidential elections. Candidates are the former leader of the “Green” Professor Alexander van der Bellen and the representative of the right-nationalist freedom Party Parliament Deputy Norbert Hofer.

“Investors are increasingly concerned about the upcoming referendum in Italy that could potentially lead to a change in the Italian government and strengthen concerns about the recapitalization of the banking system,” notes CNBC.