The Milan stock exchange's FTSE
Mib index gained 1% in early trading with rises in bank and oil
sector shares driving the gains.
The financial markets seem to have put behind them the
turbulence seen on Friday, when the FTSE Mib shed 3.72% after
the government announced it intended to allow Italy's budget
deficit to rise to 2.4% of GDP next year.
The spread between Italy's 10-year BTP bond and the German
Bund as around 270 basis points with the yield on the BTP at
3.19%.
The spread, a key measure of investor confidence and of
Italy's borrowing costs, closed at 267 basis points on Friday,
having crossed the 280 mark at one stage.
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