Lunedì, 15 Ottobre 2018

Milan falls as other European markets show gains Monday


Milan, July 29 - Milan's main financial market was
weaker Monday than most of its European counterparts, as
investors fretted on the eve of an important court ruling
involving ex-premier Silvio Berlusconi which could affect the
entire government.
The FTSE-Mib slipped by 0.89% to close at 16,275 points and
Italian banks lost ground during nervous trading.
Tuesday, Italy's top appeals court, the Court of Cassation,
will rule on a four-year prison sentence previously imposed on
Berlusconi for tax fraud.
If the Cassation upholds the verdict, the prison term and a
five-year ban from holding public office, some lawmakers in
Berlusconi's centre-right People of Freedom (PdL) party have
threatened to pull out of the coalition government and sink it.
They claim their leader is the victim of persecution by
left-wing magistrates targeting him for political reasons.
Markets were also pulled down by weakness in bank stocks,
particularly Monte dei Paschi di Siena (MPS) which fell by 4.64%
amid serious legal problems.
The European Union competition head in Brussels is
demanding that MPS be subjected to tougher penalties before it
approves a multi-billion-euro state bailout of Italy’s
third-biggest bank.
Also weak were Bpm, down 5.87%; UBI, down 3.94% and
Mediobanca, which lost 3.72%.
Meanwhile, the spread between Italy's 10-year bond and its
German counterpart was stable at 279 basis points, up slightly
from last Friday's close of 274 basis points.
The yield on Italian 10-year paper closed at 4.46%, little
changed from last Friday's closing yield of 4.4%.
The spread between lending rates in the two countries is
seen as an indication of investor faith in the Italian economy
and its ability to cope with a lingering recession.
On other European markets, Frankfurt's DAX rose by 0.17% on
the day, closing at 8,259.03 points, while both Paris's CAC 40
and London's FTSE 100 were essentially unchanged from last
Paris closed at 3,968.91 points, and London ended trading
at 6,560.25.
Spain's IBEX 35 climbed by 0.27% to close at 8,376.10

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