Italy-German spread climbs to 240 basis points
Milan leads other European markets in widespread gains24 September, 19:10
The FTSE-Mib rose by 0.85% to close trading at 18,064 points despite reports that consumer confidence in the massive American economy weakened this month compared with August over concerns about employment.
The Conference Board's consumer-confidence index fell to 79.7 in September from a revised 81.8 in August.
However, positive news came out of Germany, where the Ifo Institute said German business confidence rose for a fifth straight month in September. The Ifo business-climate index rose to 107.7 from 107.5 in August.
Bond markets seemed upbeat on the German report, widening the spread between Italy's 10-year bond and its ultra-safe German counterpart.
The spread closed at 240 basis points, up from 234 basis points one day earlier while the yield on Italian 10-year paper closed at 4.24%.
The spread between lending rates in the two countries is seen as an indication of investor faith in the Italian economy and its ability to cope with a lingering recession.
On other European markets, Spain's IBEX 35 gained 0.64% to close at 9,167.60 points while Frankfurt's DAX rose by 0.34% to close at 8,664.06 points.
In Paris, the CAC 40 gained 0.56%, ending trading at 4,195.61 points, while in London, the FTSE index of leading British shares gained 0.21% to close at 6,571.46.