Goldman Warns Italian Stocks Vulnerable to Sovereign Debt Risk - BNN Bloomberg

  • 📰 BNNBloomberg
  • ⏱ Reading Time:
  • 32 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 16%
  • Publisher: 50%

United States News News

United States United States Latest News,United States United States Headlines

The 19% rally in Italian stocks this year has left them exposed to sovereign debt risks as bond yields climb, according to Goldman Sachs Group Inc. strategists.

The team led by Sharon Bell said it expects the spread between Italian 10-year bond yields and those on benchmark German debt to widen further — although more gradually than in recent weeks — as the market re-assesses fiscal risks.

Italian equities have outperformed regional peers by far in 2023 as the surge in bond yields improved the outlook for the country’s financials-heavy benchmark index. But the march higher in rates has also increased government debt costs, and any further spike risks adding pressure on the economy as about 30% of Italian debt is held in the domestic financial system, Bell said.

With its public debt standing at over 140% of gross domestic product, Italy is the second-largest sovereign issuer behind the UK. Moody’s Investors Service currently assesses Italy at Baa3, just one notch above junk, with a negative outlook.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 83. in US
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

China Stocks Rally as Infrastructure Stimulus Bets Aid Sentiment - BNN BloombergChinese stocks advanced after a report saying Beijing is planning further support for the nation’s struggling economy boosted sentiment.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

China Stocks Rally as Infrastructure Stimulus Bets Aid Sentiment(Bloomberg) -- Chinese stocks advanced after a report saying Beijing is planning further support for the nation’s struggling economy boosted sentiment...
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

India Property Stocks Rally to 2008 High on Robust Housing Sales  - BNN BloombergIndia’s property stocks advanced to the highest in 15 years, signaling a potential breakout, as robust sales added to the optimism over the central bank’s decision to keep interest rates unchanged.
Source: BNNBloomberg - 🏆 83. / 50 Read more »

Premarket: World stocks rally as investors regain some nerve; Israel conflict rages onFed comments suggest caution needed when considering raising interest rates further
Source: globeandmail - 🏆 5. / 92 Read more »

Stocks rally as investors regain some nerve; Israel conflict rages onKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »

Gold rally loses steam as yields edge up, stocks reboundKitco News collects and features the top financial, economic and geopolitical news from around the world. Kitco's aggregated sources include some of the top newswires in the world including the Association Press, Canadian Press, Japanese Economic Newswire, and United Press International.
Source: KitcoNewsNOW - 🏆 13. / 78 Read more »