It looks like we’re getting some further fallout from last week in Italian stocks as they have been down over 600 points at one point. The index now sits -457 points at 20191, breaching the June 2013 support line.
FTSE MIB daily chart 19 05 2014
Spanish stocks are also feeling the heat -1.05% while the FTSE, CAC & Dax post small losses
There looks to be a switch into bonds as traders say that domestic Italian accounts have been buying heavy buyers of Italian 10’s (BTP’s) this morning. They’ve managed to knock the yield back from 3.20% to 3.15% and +9bp on the day.
Italian 10 year yields 19 May 2014
