Italian new economic minister Giovanni Tria sparks the sharp moves
The Italian markets are on fire after the new economic minister, Giovanni Tria said the country's new government is committed to the euro.
The FTSE MIB index is up about 3.5% in trading today. The price of the main Italian index still remains below the 200 day MA at 22702 (green line in the chart above. The price trades at 22084 currently), but the pair's fall in May and June during the government uncertainty, did survive some key tests of the August 2017 lows. The index did move below those 2017 swing lows, at the end of May but was able to stall near the lows in June (see chart above). Italian banks are leading the way.
The 10 year yield is down around 30 bps in trading today to 2.827%. This is the biggest one day drop in 6 year.
