By Adria Cimino - Nov 16, 2011 8:49 PM GMT+0700
Nov. 16 (Bloomberg) -- Charles Mounts, a managing director at Knight Capital, talks about Spain's bank turmoil and the contrast to other European sovereign debt problems. Mounts speaks with Sara Eisen and Stephanie Ruhle on Bloomberg Television's "InsideTrack." (Source: Bloomberg)
Nov. 16 (Bloomberg) -- Fabrizio Fiorini, chief investment officer at Aletti Gestielle SGR SpA talks about the outlook for Italian bonds. He speaks from Milan with Owen Thomas on Bloomberg Television's "Countdown." (Source: Bloomberg)
European stocks resumed their decline as Italy’s Mario Monti agreed to become the country’s prime minister amid concern the sovereign-debt crisis is hurting the global economy.
The Stoxx Europe 600 Index dropped 0.5 percent to 235.9 at 1:45 p.m. in London. The gauge earlier swung between a gain of 1.2 percent and a decline of 0.7 percent as the European Central Bank was said to buy Italian and Spanish bonds and the Bank of England warned failure to tackle the debt crisis could affect economic growth. Futures on the Standard & Poor’s 500 Index expiring in December lost 1 percent, while the MSCI Asia Pacific Index fell 1.2 percent today.
“The market is reacting very strongly to any news,” said Guillaume Duchesne, an equity strategist at BGL BNP Paribas SA in Luxembourg. “The political situation will remain a determining factor. We’ll see what happens with Italy.”
The benchmark measure has declined 19 percent from this year’s high on Feb. 17 as European Union policy makers struggle to contain a crisis that has Greece on the edge of a default and the region’s highly indebted nations grappling with record bond yields.
Mario Monti said he will be both prime minister and finance minister in his new Italian government. The premier-designate concluded two days of talks with political leaders yesterday in a bid to gain broad support for a Cabinet tasked with pushing through an overhaul of the currency region’s third-biggest economy.
“Market participants do not want to give up hope on a resolution of the EU crisis as the EU remains focused on finding means to expand its bailout fund,” said Stephane Ekolo, chief European strategist at Market Securities in London.
To contact the reporter on this story: Adria Cimino in Paris at acimino1@bloomberg.net
To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net
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