The woes of Italy continue as the FTSE MIB. We’re currently at 16623 -317 pts or -1.88% but have been down as low as 16577, over 2%. 10 year bond yields are up to the highest in nearly 6 weeks at 4.39%
The index is again approaching the 100 dma were it bounced in August.
Bunga bunga party at the 100dma?
The weak services PMI this morning, and the Berlusconi Sword of Damocles hanging over the political scene is sending jitters through the market. According to reports in the Italian press Berlusconi may look to withdraw his support of the coalition government before they can vote on ousting him over the conviction for tax fraud and his other crimes.
While all around we have the EU bigwigs bigging up a recovery, we cannot forget the problems that are still inherent in member states.
