2016.12.0506:36:00UTC+00European Stocks Advanced After Italian Vote

European stocks were higher while the euro regained its footing, with investors shrugging off the rejection of Italian voters on the constitutional referendum. The Stoxx Europe 600 advanced 1.3 percent in midmorning trade with every sector in positive territory.

Italy's FTSE MIB index reversed early losses to gain 1.2 percent. The majority of investors anticipated the results of the Italian referendum and the consecutive resignation of Prime Minister Matteo Renzi. Italian bank stocks were initially pressured during the market's opening, amidst concerns that a period of political unrest might hamper planned capital raising. However, concerns were eventually eased and the FTSE Italia All-Share Banks index went into positive territory.

Shares of Banca Monte dei Paschi di Siena added 0.3 percent after previously failing to open. Banco Popolare di Milano shares slipped more than 2.1 percent in morning trade, and UniCredit dropped three percent. The wider Euro Stoxx Banks Index rose 0.7 percent.

The euro was previously down 0.3 percent against the U.S. dollar at $1.0637. In government bonds, the yield on the 10-year Italian government bonds climbed as high as 2.063 percent before retreating to nearly two percent.

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