Milan, other European markets show gains in Monday trading

Spread between Italian, German bonds stable at 274 basis points

Milan, other European markets show gains in Monday trading

Milan, June 17 - Milan's leading financial market, like the rest of its European counterparts, showed some small gains Monday. The FTSE-Mib rose by 0.25% to reach 16,194 points as investors took their cue from Wall Street, which opened on a strong note. There, markets seemed to shake off earlier fears that the United States Federal Reserve, during meetings this week, could decide to suspend its massive bond-buying program. The American central bank meets Tuesday and Wednesday, but investors seem less fearful of drastic action from the Fed. One dark note in trading in Milan came from Saipem, the Italian oil-services company that warned late last week that profits were about to take a tumble. In reaction, Saipem shares plunged by 27.95% in Monday's trading. But the confidence on Wall Street was also reflected in bond markets on both sides of the Atlantic. The spread between Italy's 10-year bond and its German counterpart closed at 274 basis points, slightly lower than last week's close, while the yield on Italian 10-year paper also remained stable, closing at 4.26%. 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 1.08%, closing at 8,215.73 points, Paris's CAC 40 rose by 1.54%, closing at 3,863.66 points, Spain's IBEX 35 gained 0.81% to close at 8,136.30 points, and London's FTSE 100 rose by 0.35% to end trading at 6,330.49.

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