Chinese investors eye bargain Italian assets
European index futures rose and the euro edged off a half year low this morning after a report that Italy may get a financial fillip from China.
According to reports in the Financial Times and The Wall Street Journal , China's largest sovereign wealth fund is considering buying Italian assets.
Italian officials have held meetings with China Investment Corporation (CIC), which is wholly owned by the Chinese government, in the last month.
The talks included buying bonds as well as investing in Italian companies.
But this did nothing to ease fears that Europe is sliding into another banking crisis.
Asian shares attempted a modest rebound, but growing expectations of a Greek debt default, severe dips in French bank shares on Monday - due to their exposure and a rise in Italian bond yields - meant sentiment remained soft.
The euro declined against its Japanese counterpart for a fourth day as traders wagered the European Central Bank will cut its benchmark interest rate over the next year, according to a Credit Suisse AG index.
However, reports that Italy has held talks with China about investment served to lift the single currency somewhat.