(Bloomberg) -- European shares fell at the open, led lower by Italian equities after the European Commission rejected Italy’s plans for a wider budget deficit next year while the government stuck to its position with Deputy Prime Minister Luigi Di Maio saying his anti-austerity view will grow stronger across the continent.
The Stoxx 600 Index fell 0.4 percent, with tech and autos shares among the biggest drops. Miners gained some ground after Norsk Hydro ASA signaled it’s ready to restart the world’s largest alumina refinery in Brazil, reversing concerns about tightening supply in the market. Brazil’s exposed Telefonica SA and Santander SA rose after right-wing Jair Bolsonaro won 46.2% of the vote on Sunday night.
“The market was expecting Bolsonaro’s win but the margin has been wider than expected so it should be a good moment to buy more into Brazil and shares with exposure to that market,” Jacobo Blanquer, Chief Executive Officer of Madrid-based asset manager Tressis Gestion, said. “Brazil is in much better position than other emerging markets.”
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