Rome

>>>ANSA/European markets soar on ECB pledge to preserve euro

Italian and Spanish bond spreads plunge

>>>ANSA/European markets soar on ECB pledge to preserve euro

(ANSA) - Rome, July 26 - European stock markets soared after European Central Bank President Mario Draghi promised "to do whatever it takes to save the euro" Thursday, and called European countries' commitment to the euro "irreversible". After Draghi's announcement to reporters in London, Milan's FTSE Mib index roared to life, rising 5.62% to 13,210 points, well over the psychological threshold of 13,000 points. Italian financial institutions, battered in recent days with Italy's bonds under pressure, flew skyward. Unicredit closed up 9.21%, MPS +9.04%, Intesa Sanpaolo +8.81%, and the insurance giant Generali rose 9.3%. The alarmingly high spread between Italian and German bonds shrank 46 basis points, from 519 to 473, with Italian 10-year bonds yielding 6.05%. The spread is a barometer of Italy's borrowing costs and an indicator of investor confidence in the country's ability to weather the eurozone crisis. Italy's bonds have been under pressure amid speculation that Spain may need a bailout and on Tuesday the spread hit 537 points - a level not seen since November, when Italy's ex-premier Silvio Berlusconi was forced from office. The spread between Spanish and German bonds sank to 561 basis points from levels that surpassed 600 in recent days. The yield on 10-year Spanish bonds dipped to 6.92%. The Madrid borse's Ibex 35 index rocketed +6% at close Thursday, reaching 6368.80 points. The Paris CAC 40 index gained 4.07%. Frankfurt's DAX index rose 2.75%. London's FTSE-100 index rose 1.36%.

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