• The government solution in Italy and the assumptions contained in the government program imply more public spending which may increase financial imbalances. The market reaction is already seen in Italy's risk premium, with the yield on 10‐year debt opening today's session at 2.26% (more 4 p.p. than in the Friday’s end session). There is also the possibility of contagion to the debt of the other peripheral countries. The 10‐year Portuguese and Spanish debt yields are at 1.89% and 1.45%, respectively (more 4 and 2 p.p. than in Friday’s end session).
• The main stock indexes corrected at the end of the week, from higher levels seen at the beginning of the week. At the end of the session on Friday, the PSI20 showed a cumulative gain of 0.40% and the IBEX35 a loss of 1.42%.
• The EUR / USD continues the downward trend of the last few days. The main exchange rate of the market is currently at 1.1725. The price of Brent is close to the maximum values of the last days, around the $ 79 level.