(ANSAmed) - Milan, July 20 - Spain's stock market suffered
its biggest losses in two years Friday, leading a downward trend
in European markets as investors lost faith in the country's
financial health after the Valencia region requested a bailout.
The Madrid bourse saw a whopping 5,82% vanish to close at
6,246 points, despite Spain receiving the go-ahead Friday for a
100-billion-euro banks bailout from eurozone finance ministers.
The Milan bourse also had serious losses as the FTSE MIB was
down 4.38%, closing at 14,173 points.
Following the negative trend, borrowing costs in Italy and Spain rose. The yield spread between Italian 10-year bonds and their German benchmark equivalent, a key indicator of the country's ability to weather the economic crisis, settled at 500 points on Friday after climbing as high as 504. The spread between Spanish bonds and the German bund closed at 610 points, a record high. The yield on 10-year Italian bonds rose to 6.15%, while that on the Spanish equivalent exceeded the critical level of 7% to reach 7.269%. Stock markets were down across the continent. The Paris bourse lost 2.14% to close at 3,193 points, London's FTSE 100 slid 1.09% to close at 5,651 points and Frankfurt's DAX index lost 1.9% and closed at 6,630 points.
(ANSAmed).
Following the negative trend, borrowing costs in Italy and Spain rose. The yield spread between Italian 10-year bonds and their German benchmark equivalent, a key indicator of the country's ability to weather the economic crisis, settled at 500 points on Friday after climbing as high as 504. The spread between Spanish bonds and the German bund closed at 610 points, a record high. The yield on 10-year Italian bonds rose to 6.15%, while that on the Spanish equivalent exceeded the critical level of 7% to reach 7.269%. Stock markets were down across the continent. The Paris bourse lost 2.14% to close at 3,193 points, London's FTSE 100 slid 1.09% to close at 5,651 points and Frankfurt's DAX index lost 1.9% and closed at 6,630 points.
(ANSAmed).
