Major stock indices in Europe show a negative trend

European stocks traded in the red zone, in response to growing concerns about the risks to the financial stability of the Italian creditors before the referendum. The negative dynamics of the oil market also put preasure.

On December 4 the Italians will vote on the issue of constitutional reform. Prime Minister Renzi says will strengthen the future government by limiting the powers of the Senate. This vote is seen by experts as defining for the political fate of Renzi. He has previously warned he could resign if the Italians would say "no" to the reforms. Opinion polls show that the majority of Italians are against the constitutional changes, which, as the economists say, Italy desperately needs, if it wants the government to optimize and accelerate the growth of the economy.

Certain influence on the dynamics of trade have data for the euro area. The ECB said that the money supply increased at a slower pace, while private sector loan growth has improved in October. According to the data, the M3 monetary aggregate up to October rose by 4.4 percent year on year, after increasing by 5.1 percent in September. On average over the past three months (to October) the growth rate of monetary aggregate M3 amounted to 4.8 percent. Private sector credit volume increased by 2.3 percent, after rising 2 percent in September. Annual growth of loans to households remained stable in October - at the level of 1.8 percent. At the same time, lending to non-financial corporations has increased by 2.1 percent compared to 2 percent increase in September.

The composite index of the largest companies in the region Stoxx Europe 600 dropped 0.63 percent. The trading volume today is 14 percent lower than the average of 30 days.

The capitalization of UniCredit SpA and Banca Monte dei Paschi fell more than 3.8 percent after Financial Times reported that up to eight Italian banks may fail in the event of the defeat of Prime Minister Matteo Renzi on constitutional referendum

Against this background, the Italian MIB Index has fallen by 1.6 percent, which is one of the worst results in Western European markets.

Shares of Royal Bank of Scotland fell 2.8 percent amid reports that the bank may face difficulties when trying to sell Williams & Glyn.

Eni SpA shares and Tullow Oil Plc fell more than 1 percent, as oil prices fell below $ 46 per barrel.

At the moment:

FTSE 100 6801.95 -38.80 -0.57%

DAX -80.11 10619.16 -0.75%

CAC 40 4522.52 -27.75 -0.61%