Italy39;s bank tax reassurance ignites European stocks
Wall St futures tick higher before Thursday39;s inflation data
China CPI down 0.3 yy; follows disappointing trade data

LONDON, SYDNEY, Aug 9 Reuters Global stocks rose on Wednesday and European equities outperformed as Italy soothed market nerves with the news that a windfall tax on bank profits would be less punishing than analysts had expected.

MSCI39;s broad index of global shares was 0.3 higher in early European trade. Europe39;s regional Stoxx 600 share index rose 1, with bank stocks around 1.6 higher. Italy39;s FTSE MIB share index gained 2.

The Italian government shocked markets earlier this week with an announcement of a levy on banks39; record profits from sharply higher interest rates, sending European banking shares down 3.5.

Italy said overnight, however, that the new tax would not amount to more than 0.1 of banks39; assets, reassuring analysts and investors who had expected the tax proceeds to amount to as much as 0.5 of asset bases.

The fact the tax will be lower than expected should improve market sentiment, Deutsche Bank strategist Jim Reid said. But he also cautioned that the burdensharing of the costs and benefits from higher rates has a habit of becoming a political issue.

In the U.S., stock markets were on track to rise as optimism that a peak in inflation could steer the Federal Reserve towards cutting interest rates outweighed jitters about the health of the domestic banking sector….