February 27, 2013 / 7:26 AM / 5 years ago

Italy - Factors to watch on Feb 27

The following factors could affect Italian markets on Wednesday.

Reuters has not verified the newspaper reports, and cannot vouch for their accuracy. New items are marked with (*).

ITALY ELECTION

Italy’s stunned political parties looked for a way forward on Tuesday after an election that gave none of them a parliamentary majority, posing the threat of prolonged instability and European financial crisis.

The head of Italy’s Northern League, an ally of Silvio Berlusconi, is on course to win the Lombardy regional presidency vote, giving the centre-right control of the richest and most productive area of the country.

FINANCIAL MARKETS REACTION

Italian stocks and government bonds fell sharply on Tuesday, after a parliamentary election left Italy facing political deadlock and rekindled fears of a new euro zone debt crisis.

Uncertainty also rattled global stock indexes and European bond markets for a second day on Tuesday, though testimony Federal Reserve Chairman Ben Bernanke and strong housing figures lifted U.S. stocks.

* IMPACT ON CREDIT RATINGS

Moody’s Investors Service said late on Tuesday Italy’s inconclusive election outcome is credit negative because it raises the possibility of new elections, prolonging the country’s political uncertainty.

Standard & Poor’s said on that Italy’s sovereign ratings will not immediately be affected by the country’s recent election.

DEBT AUCTION

Italy will pay the price for its latest political crisis with higher borrowing costs on Wednesday when it sells longer-dated bonds to investors worried about an inconclusive election.

Treasury sells 1.75-2.5 billion euros ninth tranche 5-year BTP, fixed rate bonds, maturing on Nov. 1, 2017, at 3.5 percent coupon and 3.0-4.0 billion euros new 10-year BTP maturing on May 1, 2023, at 4.5 percent coupon. Subscriptions close at 1000 GMT.

* INTESA SANPAOLO, BANCO POPOLARE, MEDIOLANUM, BANCA CARIGE

Market watchdog Consob banned short-selling of shares in Banco Popolare and Mediolanum on Wednesday as their stock dropped sharply on Tuesday on concerns over Italy’s election messy outcome. Consob had already banned short-selling on Intesa Sanpaolo’s and Carige’s shares on Tuesday and Wednesday.

The FSA in London also took the same measure on Wednesday morning.

* MONTE DEI PASCHI

The bank should get the final go-ahead to issue 3.9 billion euros of so-called Monti bonds from the Treasury obn Thursday, La Repubblica daily said on Wednesday.

* TELECOM ITALIA MEDIA, CAIRO COMMUNICATION

The company’s board is meeting on Wednesday to sign-off an agreement with Cairo Communication on the sale of TV channel La 7.

* IMPREGILO

Salini has filed its prospectus to take over bigger building peer Impregilo late on Tuesday.

For Italian market data and news, click on codes in brackets:

20 biggest gainers (in percentage)............

20 biggest losers (in percentage).............

FTSE IT allshare index

FTSE Mib index........

FTSE Allstars index...

FTSE Mid Cap index....

Block trades..........

Stories on Italy...... IT-LEN

For pan-European market data and news, click on codes in brackets: European Equities speed guide................... FTSEurofirst 300 index.............................. DJ STOXX index...................................... Top 10 STOXX sectors........................... Top 10 EUROSTOXX sectors...................... Top 10 Eurofirst 300 sectors................... Top 25 European pct gainers....................... Top 25 European pct losers........................ Main stock markets: Dow Jones............... Wall Street report ..... Nikkei 225............. Tokyo report............ FTSE 100............... London report........... Xetra DAX............. Frankfurt market stories CAC-40................. Paris market stories... World Indices..................................... Reuters survey of world bourse outlook......... Western European IPO diary.......................... European Asset Allocation........................ Reuters News at a Glance: Equities............... Main currency report:...............................

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