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Italian stocks rise, bond yields fall after court ruling
January 11, 2017 / 1:44 PM / a year ago

Italian stocks rise, bond yields fall after court ruling

LONDON, Jan 11 (Reuters) - Italy’s bond yields fell, while the euro and Italian stocks rose on Wednesday, after a key court rejected a bid by Italy’s biggest labour union to hold a referendum on recent rule changes that made it easier to fire workers.

The 2015 “Jobs Act” that the Constitutional Court backed was a flagship project in former premier Matteo Renzi’s attempts to breathe life into the euro zone’s most chronically stagnant economy.

Italy’s 10-year government bond yield fell 6 basis points to 1.86 percent after the ruling, its lowest level in a week. It was trading at around 1.89 percent just before the announcement.

The euro rose around 10 ticks versus the dollar, still down 0.45 percent on the day at $1.0504, while Italy’s FTSE MIB stock index hit a day’s high to stand 0.4 percent higher on day.

The court accepted the CGIL union’s proposals for two other referendums, however - on the use of vouchers to pay workers who have no contract, and on contracting companies’ obligations to workers. (Reporting by Dhara Ranasinghe; editing by Marc Jones)

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