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Italy's leading financial index steady to end trading week

Spread between Italian, German bonds holds at 226 basis points

13 December, 18:45
Italy's leading financial index steady to end trading week (ANSA) - Milan, December 13 - Italy's leading financial index was unchanged Friday and other major European markets weakened slightly as investors watched and waited for the latest news from the United States Federal Reserve.

The FTSE Mib ended the trading day unchanged at 17,805 points as market participants waited for clues from next week's Fed meetings as to whether the American central bank is preparing to reduce monetary stimulus and if so, when.

The Fed's key policy meetings will culminate in a rate announcement on December 18.

Little changed in the Italian bond market with a continued narrow spread between Italy's benchmark 10-year bond and its ultra-safe German counterpart.

The spread closed at 226 basis points, essentially unchanged from Thursday's close, with the yield on Italy's 10-year paper ending trading at 4.08%.

The spread between lending rates in the two countries is an important indication of investor faith in the Italian economy.

In other European markets Spain's IBEX 35 was essentially unchanged, closing at 9,272.70 and Frankfurt's DAX fell by 0.12%, closing at 9,006.046 points.

In Paris, the CAC 40 fell by 0.23%, ending trading at 4,059.71 points, while in London, the FTSE index of leading British shares fell by 0.08% on the day, closing at 6,439.96.