Milan

Milan, other European markets post losses

Weak gold prices, poor Chinese data, weigh on financial markets

Milan, other European markets post losses

Milan, April 15 - Plunging gold prices and weak economic data from powerhouse China drove down European financial markets Monday, including Italy's leading bourse. On the Milan Stock Exchange, the FTSE-Mib slipped by 0.96% to close trading at 15,628 points. The spread between Italian and German debt, an indicator of investor confidence in Italy's ability to deal with the euro crisis, reached 309 basis points, up slightly from last Friday's close of 306 basis points. The yield on 10-year Italian Treasury bonds held steady at 4.33% at Monday's close, essentially unchanged from last Friday. Investors were rattled by data released Monday that showed that the massive Chinese economy had unexpectedly lost momentum in the first quarter. China's economy expanded by 7.7% during the first three months of this year, compared with a year earlier, falling well short of forecasts for an increase of 8%. Growth had also slowed from the 7.9% reported in the final quarter of 2012. At the same time, the value of gold - traditionally seen as a safe haven for investors - continued to plunge on Monday. Analysts say the two-day sell-off that began last Friday has been the worst drop for the precious metal since 1980. Part of the fall in the value of gold can be blamed on rumours that troubled Cyprus must sell its holdings to meet obligations to European financiers. However, Italian markets did get some positive news in the form of strong demand for new, four-year inflation-linked Italian bonds. Almost nine billion euros in paper was sold, bearing a minimum return of 2.25%. Although the sale of the new debt had been scheduled to continue until Thursday, it may wrap up early due to the strong interest. Meanwhile, in other European markets, Frankfurt's DAX slid by 0.41% to reach 7,712.63 points, while Spain's IBEX 35 took another hit on the day, losing 0.33% to close at 8,014.10 points. In Paris, the CAC 40 fell by 0.50% to close at 3,710.48 points, and London's FTSE 100 ended the trading day 0.64% lower, closing at 6,343.60.

Lascia il tuo commento

Condividi le tue opinioni su Gazzetta del Sud online

Caratteri rimanenti: 400

Le altre notizie

i più letti di oggi

Natalina tornava dal lavoro

Natalina tornava dal lavoro

di Salvatore De Maria