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Italian Bonds Markets Rise after Monti Resignation News

In mid-morning trading the FTSE was down 10 points.

Stocks were lower this morning as concerns over the Eurozone and mixed reports from the Far East send equities spread trading markets into the red.

The news that Italian Prime Minister, Mario Monti is to step down once next year’s budget is approved has pushed Italian bonds spread betting markets higher.

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Mr. Monti, who has been in power for the last thirteen months, has not only pushed through the country’s austerity programme, but his pro-EU stance has helped bring stability to Italy’s borrowing cost.

The voice of anti-austerity in Italy, Silvio Berlusconi, is tipped to make to return to politics. Financial spread betting investors are afraid he might re-gain popularity with his anti-Brussels rhetoric.

The latest GDP figures from Japan revealed that the country is in recession. Output for its final quarter fell by 0.9%, and the previous quarter was revised down to a 0.1% contraction.

The third largest economy in the world is now in its fifth recession in fifteen years. China’s strong industrial production was also offset by much weaker-than-expected exports. Overall, investors are taking away from this that the Far East is far from strong.

Looking at the US index futures, we are expecting the Dow to open down 30 points at 13,125.

As the fiscal cliff talks continue, a number of republicans have eased up on their opposition to tax hikes for top earners. However, we are still miles away from bridging the gap.

 

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Financial Market Comments from Will Hedden, Sales Trader, IG Index.

The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.

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