The bond spread widened and the
Milan bourse and euro dropped after Italy's inconclusive
election results Monday.
The spread between Italian and German 10-year bonds, a gauge
of market confidence in the Italian economy and of Italy's
borrowing costs, jumped 12 points to 143 after Italy's
inconclusive election results Monday.
The yield rose above 2%, to 2.03% as no clear winner emerged
and a hung parliament beckoned, according to projections.
The euro fell below $1.23 after the results.
The European single currency fell to a low of $1.2269 before
settling at $1.2280.
The Milan bourse opened 2.03% down on 21,446 points while
other European bourses showed slight falls and gains.
But the bourse later rallied to show a loss of just 0.9%, at
21,704 points.
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