Join Sophia Ziaee as she brings you the latest market update on Wednesday, 9th November 2011 from the City Index trading floor.
- Italian Prime Minister Silvio Berlusconi has finally confirmed his resignation after the approval of a budget law.
- Mr Berlusconi's exit has provided little relief to Italy's government bonds.
- The yield on 10-year Italian debt remained deep into the danger zone this morning, spiking early before hovering around 6.75%.
- However, this morning markets have hailed the news of his resignation. The FTSE 100 jumped 48 points to 5615 (up 0.86%), while the German DAX and the Italian FTSE MIB both rose by 1.4%.
- Asia also joined in the general feeling of relief, with Japan's Nikkei ending 1.16% higher.
- Traders are expecting shares to rise this morning, but any Berlusconi Bounce could be short-lived.
- Also news from Greece is that the search for the next prime minister might finally end in the next few hours.
- And finally, it's is bad news for Lloyds. After posting a £3.8 billion loss for the first nine months of the year yesterday, the bank now faces a potential downgrade by ratings agency because of the sick leave taken by chief executive Antonio Horta-Osorio.
For more market news and insights from City Index, visit http://www.cityindex.co.uk/market-analysis/
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