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Italy still has a reach that is far and |
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wide and that was shown yesterday. |
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Released on Thursday, November 10, 2011, 8:00 AM ET
Pittsburgh, PA (SpeculatingStocks) - Italy has the fourth largest economy in Europe. Its reach is far and wide and certainly enough to affect stocks.
Italy’s 10-year bond yield spiked above 7% and set off fears. This is the same level that increased worries about Greece, Ireland and Portugal. They all had to receive some bailout.
The fear is that Italy may need bailed out. Italy's bond situation is another sign that the global economy isn’t improving as hoped and U.S. stocks took a bath. The NASDAQ finished down over 105 points today and the
DOW down over 389 points.
Italy’s problems may not be as big as the market indicated. Some say that it’s more of an investor confidence issue in Italy than actual solvency issues.
International markets are taking a heavy hit as well with the Hang Seng down over 4%.
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