Martedì, 18 Settembre 2018

Italian political uncertainty spooked investors, says ECB


Rome, January 17 - The European Central Bank said
in its monthly bulletin on Thursday that "increased political
uncertainty in Italy" had caused unease among investors.
In December ex-premier Silvio Berlusconi's People of
Freedom (PdL) party withdraw its support for Prime Minister
Mario Monti's emergency government of unelected technocrats,
sparking early elections, which will take place next month.
Berlusconi also announced he had dropped plans to retire
from front-line politics.
The media magnate has since said that PdL Secretary
Angelino Alfano is the centre right's premier candidate and that
he wants to be economy minister if his coalition wins the
elections, rather than be head of government for the fourth
"Increased political uncertainty in Italy led to some
flight-to-safety flows into bonds issued by AAA-rated
countries," the ECB said.
The spread between 10-year Italian bonds and the German
benchmark, a key measure of investor confidence in Italy, rose
sharply after last month's announcement of the resignation of
Monti, who has stayed on as caretaker premier.
But the bond markets have since calmed and last week the
spread fell to its lowest level since July 2011.
"Other factors contributed positively to market
sentiment," the ECB said in its bulletin.
"They include the agreement on common banking supervision
(in the eurozone) under the auspices of the ECB, and the
successful conduct of the Greek government's debt buyback
operation, with the credit rating for Greece subsequently being
upgraded six steps by Standard & Poor's.
"At the end of December, the so-called "fiscal cliff" in
the United States likewise caught the attention of market
players on the euro area bond market.
"The initial failure to reach an agreement sparked some
flight-to-safety flows into AAA-rated euro area bonds, but the
eventually struck deal improved sentiment regarding risky
assets, and the yields on AAA-rated bonds increased".

© Riproduzione riservata

* Campi obbligatori

Immagine non superiore a 5Mb (Formati permessi: JPG, JPEG, PNG)
Video non superiore a 10Mb (Formati permessi: MP4, MOV, M4V)


Accedi con il tuo account Facebook

Login con

Login con Facebook