Bond spread with Germany closes at 258
Milan, other European financial markets close lower Thursday03 October, 20:01
Milan's key FTSE Mib fell by 0.44% to close at 18,018.
Investors were concerned as the government shutdown in the US continued for the third day, raising fears that the issue will hurt upcoming talks on raising the debt ceiling in the world's biggest economy.
Milan's markets were also moved, but in a positive way, by the resignation of Franco Bernabe, chief executive of troubled Telecom Italia.
The company's shares rose by 1.66% to close trading at 0.64 euro cents after Bernabe told the board he was leaving, in part because of a change in strategy driven by the increased share taken by Spain's Telefonica.
Bond markets were stable with little change in the spread between Italy's benchmark 10-year bond and its ultra-safe German counterpart.
The spread closed at 258 basis points with a yield on Italy's 10-year paper at 4.37%.
The spread between lending rates in the two countries is an important indication of investor faith in the Italian economy, and the government's ability to work cooperatively to cope with a lingering recession.
Other European markets were weak on the day as Spain's IBEX 35 fell by 0.58% to close at 9,295.70 points while Frankfurt's DAX fell by 0.37%, closing at 8,597.91 points.
In Paris, the CAC 40 fell by 0.70%, ending trading at 4,127.98 points, while in London, the FTSE index of leading British shares rose by 0.18% on the day, closing at 6,449 points.