Milan

Milan, other European markets gain in trading Wednesday

Investor hope for ECB interest-rate cut drives gains

Milan, other European markets gain in trading Wednesday

Milan, May 15 - Investor optimism in another interest-rate cut by the European Central Bank helped to push Milan and most other European financial markets higher on Wednesday. On the Milan Stock Exchange, the FTSE-Mib rose by 1.02% to close trading at 17,492 points. Other European markets also rose - driven, some analysts said, by weak economic data that many think could push the ECB to lower its trend-setting interest rate. Italy's gross domestic product (GDP) fell by 0.5% in the first three months of 2013, national statistics agency Istat said Wednesday. That means that Italy's recession has become the longest on record, with seven straight quarterly drops in GDP. And Italy is not alone in economic woes. Eurostat, the statistics office of the European Union, reported that GDP for the currency bloc dropped 0.2% in the first quarter of 2013, meaning that the eurozone is in its longest recession since it was created. Downturns in France, Italy, Spain and the Netherlands drove the downturn, while Germany grew by a meagre 0.1% in Q1. Earlier this month, the ECB lowered its main rate by a quarter of one percentage point to a record low 0.50% and hinted that more stimulus may yet be needed. Meanwhile, the debt market in Italy was treading water on Wednesday, maintaining the spread between Italian and German debt. It closed trading at 262 basis points, essentially unchanged on the week, with a yield on 10-year Treasury bonds closing at 4.01%. 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 was unchanged from Tuesday, closing at 8,278.59 points, while Paris's CAC 40 rose by 0.41%, closing at 3,982.23 points, and London's FTSE 100 ended the trading day 0.10% higher, closing at 6,631.76. Spain's IBEX 35 gained 1.27% to close at 8,582.50 points.

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