Italy’s leading financial index loses 1.77% on trading day
(ANSA) – Milan, November 19 – Italy’s leading financial index lost 1.77% on Tuesday, the worst result among other major European markets that also sank during the trading day.
The FTSE Mib ended the day at 18,766 points, pulled lower by weakening stocks including Finmeccanica, which shed 2.45% after reports that the Indian government is poised to cancel a major contract for 12 helicopters from its AgustaWestland unit.
Finmeccanica has said it is working to address India’s concerns. Italians banks were also weaker in trading on the day while Italian oil service provider Saipem shed fully 4.07 % of its value.
The Italian bond market held its ground, continuing to narrow the spread between Italy’s benchmark 10-year bond and its ultra-safe German counterpart.
The spread closed at 234 basis points, slightly narrower than Monday’s close of 239 basis points, with the yield on Italy’s 10-year paper closing at 4.06%.
The spread between lending rates in the two countries is an important indicator of investor faith in the Italian economy, and of the ability of the various factions in the coalition government to work cooperatively to deal with a lingering recession.
On other European markets Spain’s IBEX 35 shed 1.57% to close at 9,629.80 and Frankfurt’s DAX lost 0.35%, closing at 9,193.29 points.
In Paris, the CAC 40 fell by 1.12%, ending trading at 4,272.29 points, while in London, the FTSE index of leading British shares fell by 0.38% on the day, closing at 6,698.01.