Milan, other European markets rise

Investors more confident that Fed's policy measures to remain

Milan, other European markets rise

Milan, May 30 - Milan's leading financial market, like most of its European counterparts, rose Thursday as investors held out hope that the US Federal Reserve will continue with its stimulus policies. Milan's FTSE Mib gained 0.66% in Thursday's trading, rising to end the day at 17,350 points. Although investors pulled back on Wednesday over strong economic data in the United States, which drove down financial markets, they paused Thursday to reassess. Confidence that the Fed will leave policy as it now is was fed by news that the U.S. economy was weaker than expected in the first quarter of this year. The U.S. Commerce Department reported that the American economy grew by 2.4% in Q1, down slightly from the initial estimate of 2.5% growth. Analysts had predicted there would be no change in the growth figures. The easing of investor concerns over the Fed's actions helped to narrow the spread between Italy's 10-year bond and its German counterpart, which closed at 259 basis points. That was a bit narrower than Wednesday's close of 265 basis points. The yield on Italian 10-year paper closed at 4.10%. 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 gained 0.76%, closing at 8,400.20 points, while Paris's CAC 40 rose by 0.56%, closing at 3,996.31 points, and Spain's IBEX 35 shed 0.10% to close at 8,433.50 points. London's FTSE 100 rose by 0.45% points to close at 6,656.99 points.

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