Martedì, 23 Ottobre 2018

European stock exchanges lose ground, spreads higher


(ANSA) - Milan, October 9 - Jittery European markets ceded
terrain on Tuesday, while German Chancellor Angela Merkel met
Greek Premier Antonis Samaras in the Greek parliament building,
with 40,000 demonstrators protesting outside against her
presence and the threat of more austerity measures.
Madrid's stock exchange suffered most, with the Ibex 35
index losing 1.85% to close at 7,745.40 points.
Milan's FTSE MIB fell 0.37% to close at 15,504 points,
while London's FTSE-100 slipped 0.54%.
Frankfurt's DAX index and Paris's CAC 40 index sank 0.78%
and 0.70%, respectively.
The spread between Italian and German 10-year bonds rose
three points to close at 363 basis points Tuesday.
The yield on the Italian paper was 5.10%.
The difference between interest rates on Spanish bonds and
the German benchmark closed at 434 basis points.
The yield on the 10-year Spanish bond was 5.82%.
The bond spread is an important indicator of market
confidence in the countries' abilities to pay down their huge
public debts - and a distorted one necessitating continued
reforms and sacrifices, according to the International Monetary
Fund (IMF).
Italy and Spain are paying higher bond-interest rates than
the fundamentals of their economies would predict, while
countries like the United States and Japan enjoy lower yields
than would be expected of their economies, according to the
IMF's Fiscal Monitor.
Because of the financial pressure, Spain and Italy "must
continue corrective measures to restore competitiveness and
fiscal stability and to maintain growth", said the IMF's chief
economist, Olivier Blanchard, on Tuesday.

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