Bond, stock markets reel after inconclusive Italian vote
Consob considering action to combat volatility26 February, 13:35
(see related stories) (ANSA) - Rome, February 26 - Italian bonds came under pressure and the Milan stock exchange suffered big losses in early trading on Tuesday after the country's general election failed to produce a clear winner.
The spread between the 10-year Italian bond and the German benchmark, a key measure of investor confidence and of the country's borrowing costs, shot up by 55 basis points to 348 before sliding back down to 320 with a yield of 4.69%.
The Milan stock exchange's FTSE Mib index shed 4.5%, with bank shares sustaining the biggest losses.
Stock-market regulator Consob said Tuesday that it was considering taking action to combat the volatility.