Sabato, 20 Ottobre 2018

European stocks rally, spreads narrow


(ANSA) - Milan, October 1 - European stock exchanges gained
ground while bond spreads fell on Monday on news that the
International Monetary Fund (IMF) backed tax reforms in Italy
and Spain would not face a rating downgrade if it sought
financial help from Europe.
The IMF voiced support for a tax bill currently under
examination in the Italian parliament, saying the reform would
make a "significant improvement" to Italy's tax system -
strategically and structurally - by streamlining and adding
Milan's FTSE MIB outshone other European markets Monday,
rising 2.83% to close at 15,523 points. Banks, the television
company Mediaset and cement maker Buzzi did particularly well,
though it was difficult to find a losing stock on the Milan
bourse Monday.
Even automaker Fiat Industriale rose despite its report
that auto registrations in Italy contracted 25.74% in September,
marking the worst September results since 1984. Fiat also
reported it had gained 0.6% market share to take 30.3% of
Italy's vehicle market.
Other European markets closed in positive territory as
well, with Paris's CAC 40 rising 2.39%, London's FTSE-100 up
1.37%, Madrid's Ibex 35 gaining 0.98% and Frankfurt's DAX rising
Even Athens's General Index edged up 0.72%, although the
troika - the European Union, the European Central Bank and the
International Monetary Fund - appeared to have failed to reach
an agreement with the Greek government on Monday.
The troika's earlier meeting Monday with Finance Minister
Yannis Stournaras ended in a stalemate over 2 billion euros. A
second meeting, this time with Greek Premier Antonis Samaras,
probably failed to find a deal, the media quoted local analysts
as saying. Their judgement was based on the brevity of the
second meeting, which lasted just 35 minutes.
Meanwhile, the Spanish government did not ask for any
financial aid during a Monday meeting with the European
Commissioner for Economic and Monetary Affairs Olli Rehn, though
Fitch Ratings Managing Director David Rilet told Bloomberg
Television that Spain was "rather close" to asking aid from the
Importantly, Riley added that a bailout would not trigger a
rating downgrade for Spanish bonds.
The spread, a barometer of Spain's borrowing costs in the
eurozone crisis, narrowed Monday, with the difference between
Spanish bonds and the German benchmark closing at 442 basis
points. The yield on Spanish 10-year bonds closed at 5.8%.
The spread between interest rates on Italian and German
10-year bonds fell eight points Monday to close at 362 basis
points. The yield on Italian bonds was 5.07%.

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