Italy: A Climate For Investing?

The Italian Bourse is Italy’s stock exchange, situated in the fashion capital of Milan. Find out why Italy offers a climate ripe for investing and trading

Italian Bourse and how to invest in Italy

The Italian Bourse is Italy’s stock exchange based in Milan, formerly part of the London Stock Exchange and now part of Euronext, a pan-European stock exchange group. The deal was completed on the 29th of April of this  year for a total of €4.3 billion. The exchange consists of various notable Italian listed companies and brands and also provides investors with a host of trading options including securities and a range of financial instruments. The exchange is over 200 years old dating all the way back to the 1800’s.  Operating under its official name, Borsa Italiana S.p.A.,  the exchange, like any stock exchange has a multi-pronged financial setup. In other words it focuses on a number of financial endeavours such as developing its markets, maximizing liquidity, and maintaining high levels of productivity and pellucidity. All trading takes place in euros, companies include heavy-hitters like Fiat Chrysler and Ferrari, and investors can trade in bonds, derivatives (speculation), exchange-traded funds (ETFs) and other financial instruments.  Brokers trade at the exchange or via an electronic trading – something that’s become a lot more common place thanks to various online broker firms. Operating hours are Monday to Friday, 9am to 5:30pm.

Why is Italy appealing to investors?

When it comes to FDI (Foreign Direct Investment), Italy has some pretty strong drawcards. Included in its arsenal of appeal is a diversified economy, a skilled workforce,  good infrastructure, a key manufacturer in the global economy, a position as one of the biggest markets in the EU, and finally – a strategic location that places it at the crossroads between Europe, North Africa and the Middle East. Italy’s industrial sector is formidable, its SME’s (small and medium-sized enterprises) are very competitive in the export market and the country is host to major trade shows that attract more than 400 thousand visitors. Italy is also renowned for its solid infrastructure, although this is region-dependent. Technical expertise go hand in hand with a skilled workforce and as of late the government has been investing in technology and digitisation for public admin,  looking to further promote ‘Made in Italy’, and streamlining collaborative efforts between education facilities and research entities.  In essence, Italy has a slew of positive attributes that contribute to its appeal to foreign investors.

Ripe for investment, ripe for trading

There are an array of financial media outlets that provide the latest news on the stock market in Milan. And for anyone looking to invest in stocks or trade in derivatives on the Italian stock exchange, financial news is of paramount importance. A country’s economy is intrinsically linked to its stock exchange, providing traders and investors with new lucrative possibilities specific to that country. Italy’s aforementioned qualities combined with its government initiatives make it both ripe for investment and ripe for trading.  Like most stock exchanges, there are long term and short term investment opportunities – each with its own set of benefits and pitfalls. Those who partake in short term investments on Italy’s stock exchange expose themselves to a more volatile environment while those who dabble in long term investments can face less risk or even take on more risks due to the amount of time allotted to the investment – recovery is bound to occur if there’s enough time and the stock has enough growth potential. Traders who prefer short terms investments should if possible, rather invest in blue-chips stocks or one’s on par; in this case Fiat Chrysler or Ferrari would be good options.