Italian markets give a shrug to confirmation of Belusconi conviction

|By:, SA News Editor

Shares in Italy (EWI) are -0.1% following the decision yesterday by the country's High Court to confirm Silvio Berlusconi's conviction for tax fraud and a four-year prison sentence, which he's anyway unlikely to serve.

The high court sent a ban on Berlusconi holding public office back to a lower court for review.

The ruling exacerbates the fissures within the ruling coalition, with members of Berlusconi's People of Liberty group threatening to bring the government down if the conviction were upheld. Members of the Democratic Party of PM Enrico Letta don't like being allied to Berlusconi.

Italian bonds (ITLY, ITLT) are just as tame as stocks, with 10-year yields down 2 bps at 4.35%.