European markets gain slightly helped by Draghi and banks
Milan bourse edges up despite Finmeccanica woes
12 February, 20:07
(ANSA) - Milan, February 12 - European markets ended Tuesday
slightly higher after European Central Bank President Mario
Draghi praised reform efforts in Spain and investors showed wary
optimism ahead of a major G-20 summit scheduled for Friday.Despite a big drop in shares of Italian defense giant Finmeccanica and other industrials like Pirelli, the Milan stock exchange managed to chalk up a slight gain for the day with the FTSE MIB up 0.69% at 16,644.45.
Finmeccanica shed just over 7% after early morning news that Chief Executive Giuseppe Orsi was arrested as part of an investigation into possible payments of kickbacks by the company - which is controlled by the Italian government - to the Indian government for a helicopter order in 2010.
Tyre maker Pirelli slid some 3% after French giant Michelin said that it saw uncertain prospects in mature markets this year.
However big banks, a main component in the financials-heavy index, mostly did well, with Intesa Sanpaolo up 2.3%, Unicredit up 1.47% and Banco Popolare up 1.4%.
Other European markets also ended higher, with Spain leading the way.
Madrid's Ibex 35 ended the day up 1.93% at 8234.70, after ECB President Mario Draghi praised the country's reforms and said the country was on the right track.
Paris's CAC 40 edged almost 1.0% higher, at 3686.58, while London's FTSE 100 also gained nearly 1.0%, closing at 6338.38, following a rally in shares of Barclay's, which issued a positively received earnings report.
Frankfurt's DAX also ended the day higher, up 0.35% at 7660.19.
The spread between Italy's 10-year government bonds and their German equivalent - a closely watched benchmark of Italy's economic prospects - closed Tuesday at 287 basis points, down from Monday's close of 301.
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