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Dec 6, 2016

European Markets Closing Report on December 6, 2016: European Markets Close Higher, IG Group Shares Collapse 38%
Silvia Amaro, Sam Meredith
European bourses closed higher Tuesday as concerns over political instability eased and investors focused on the upcoming meeting of the European Central Bank.
The pan-European Stoxx 600 was provisionally 0.9 percent higher by the close of trade with financial services stocks among the worst performing sectors after the U.K. financial watchdog announced stricter rules.
The Financial Conduct Authority proposed on Tuesday new rules for firms selling CFD (contract for difference) products after 82 percent of clients lost money on such investments. The announcement caused shares of IG Group to plunge and the company ended 38 percent lower.
Meanwhile in the U.S., the Dow Jones industrial average opened was fractionally lower setting record highs in the previous session yet again in a remarkable run since President-elect Donald Trump's victory.
Meanwhile, the Italian index was higher on Tuesday despite ongoing political and financial concerns.

Italian Prime Minister Matteo Renzi has agreed to delay its resignation until the country's 2017 budget is approved, easing the risks of early snap elections following the government's defeat in a referendum. Expectations that early elections would be averted helped controlling a selling-off on Monday.
However, risks to the banking system continue. The Financial Times reported that Italy's Banca Monte dei Paschi di Siena has been told to prepare for a state bailout on reports that a key investor is reconsidering whether to contribute to a 5 billion euro recapitalization. Its shares fell more than 4.5 percent on Tuesday.
Elsewhere, Actelion shares were 1.8 percent higher on reports that the French drugmaker Sanofi is preparing a bid for the Swiss company.
Analysts are expecting ECB President Mario Draghi to announce Thursday an extension to the bank's trillion-euro bond-buying scheme, at least by another six months.
In the U.K., the government continues with an appeal against a High Court ruling stating that it needs parliamentary approval before triggering Article 50 of the EU and start Brexit negotiations with Europe.