-
ECB, global recovery behind markets' mercy on Italy
Italy's election produced the hung parliament investors said was the worst possible outcome, recession is deepening, debt is rising and its credit rating has just been downgraded. So why do markets seem largely unconcerned? Italy's benchmark borrowing costs have edged up to around 4.6 percent from 4.5 before the election and the gap between safer German Bunds has risen to 3.1 percentage points from around 2.9 points. That is a negligible reaction to economic sickness and political gridlock in the euro zone's third largest economy. The crippling bond yields above 7 percent at the height of the euro zone debt crisis in ... (full story)