Giovedì, 20 Settembre 2018

Spread narrows and markets up despite worrying EU GDP stats


(ANSA) - Rome, August 14 - The yield spread between 10-year
Italian bonds and the German benchmark narrowed and European
markets were up despite disheartening industrial output numbers
in both Italy and Europe on Tuesday.
The spread, a barometer of Italy's borrowing costs in the
eurozone crisis, opened at 447 basis points before falling 14
points to close at 433 at the end of the day.
The yield also dropped, to 5.8%.
Markets were up across Europe, including Milan where the
FTSE MIB index earned 0.85% to close at 14,656 points.
The Frankfurt bourse was up nearly a full percentage point
to close at 6,974.39.
The Paris CAC 40 index earned 0.70% to close at 3,450.27.
London's stock market was up 0.56% and closed at 5,864.78.
Madrid's Ibex index was up 0.78%, closing at 7,124.80
Like Italy, Spain's borrowing costs have been under
increasing pressure amid Europe's sovereign-debt crisis.
But its spread between national bonds and the German
benchmark bund also narrowed on Tuesday, to 519 points.
Analysts said the demand for Spanish paper increased as the
likelihood grows for the heavily indebted nation to request a
bailout from the EU and the European Central Bank.
Earlier on Tuesday Eurostat released flash estimates that
Spain's economy shrank 0.4% in the second quarter, pushing it
deeper into recession.
The gross domestic products of both the eurozone and the
European Union as a whole fell 0.2% in the second quarter of
2012 compared with the previous quarter.
In the first three months of 2012, growth rates were flat
at 0% in both zones, the study said.
The EU's statistical office said that seasonally adjusted
GDP fell by 0.4% in the eurozone and by 0.2% in the EU27 in the
second quarter of 2012 compared with the same quarter of 2011.
Recession-hit Italy registered Europe's biggest
year-on-year drop in industrial output in June, when production
fell 8.2% compared with the same month in 2011, Eurostat said in
the report.
Italy's industrial output dropped 1.4% in June compared to
May this year.

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