Political uncertainty in Spain and Italy is spooking markets in Europe, with Spanish PM Mariano...

|By:, SA News Editor
Political uncertainty in Spain and Italy is spooking markets in Europe, with Spanish PM Mariano Rajoy having to fight off allegations that he other leaders of his party took bribes. In Italy, Silvio Berlusconi's party is surging in the polls ahead of upcoming elections as he promises to tear up "German-imposed" austerity policies and cancel a despised property tax. At midday in Europe, Madrid shares were -1.6% and Milan was -2.1%, while Spanish 10-year bonds were +15 bps to 5.21% and those Italy were +7 bps at 4.4%.