Spread closes 5 pts down on 228

(ANSA) – Rome, December 9 – Italian financial markets on Monday appeared to welcome the election of business-friendly Florence Mayor Matteo Renzi as new leader of the country’s largest political force, the centre-left Democratic Party (PD). The spread between Italian 10-year bonds and their AAA-rated German equivalents, the premium investors pay to hold Italian paper, closed five points down on 228 with a 4.13% yield.

A narrower spread indicates greater investor confidence in the Italian economy and Rome’s ability to pay down its huge debt.

The Milan bourse closed 0.89% up as investors seemed to look forward to Renzi, who has been widely compared to a young Tony Blair, giving firms and the economy a boost as he influences the policy of the government led by former PD deputy head Enrico Letta.

European markets posted moderate gains amid lower concern the Federal Reserve may start easing stimulus policies quicker than expected.

London was 0.11% up, Frankfurt 0.25%, Paris 0.11%, Madrid 0.90% and Athens 0.47% up.