On Wednesday, October 7, the FTSE MIB closed at 49,972 points, down 2.51%, below 50,000 and at June levels (ANSA). At midday La Stampa had flagged a “storm on bonds” with the spread rising. Paris closed at −1.22%. In the evening ANSA speaks of stocks, bonds and the euro plunging and of an IMF warning on debt, whose details are not yet confirmed. The euro fell to around 1.118 dollars. On Tuesday the BTP-Bund spread stood at 105.3 points; Wednesday’s closing figure is not confirmed by two sources. Il Sole 24 Ore notes the record issuance of European government bonds, 1,440 billion in 2026.
When the spread rises, the state pays more to finance itself and the banks, which hold many BTPs on their balance sheets, lose on the stock market. A session like this, across Europe, says the market is looking at the debt of the most exposed countries, France and Italy first.
If you have a variable-rate mortgage, the effect comes through ECB rates more than through the spread. If you have equity funds or BTPs, today’s value has fallen: deciding on the back of a single session is usually a mistake.
The market is demanding accountability for high debts and uncertain budget packages in Europe: the session is a warning to the governments that are writing their budgets.
One day of selling, after two days of gains, is volatility rather than crisis. The ECB has tools to intervene if the spread moves away from fundamentals.
Watch three numbers on Thursday: the spread above or below 110 points, the euro above or below 1.12, and the banks on Piazza Affari. If all three worsen further, it will be the ECB’s turn to speak; if they stabilize, Wednesday will be remembered as a jolt.
ANSA (FTSE MIB close, Paris, “stocks, bonds and euro plunging,” Oct. 6 spread) · La Stampa (mid-session) · SoldiOnline (closes of Oct. 5 and 6) · Il Sole 24 Ore · la Repubblica · Corriere della Sera · spread level and IMF details not confirmed
Storm over stock markets and government bonds. Piazza Affari loses 2.51% and falls below 50,000
Selling in shares, bonds and the euro across Europe. Milan is the worst market and wipes out Monday’s and Tuesday’s gains in a single session. ANSA reports a warning from the International Monetary Fund on debt.
On Wednesday the FTSE MIB closed down 2.51%, at 49,972 points, below the psychological threshold of 50,000 and back at June levels, according to ANSA. Already at midday La Stampa spoke of a “storm on bonds,” with the spread rising and Piazza Affari down 2.5%. In a single session Milan erased Monday’s gains (+0.66%) and Tuesday’s (+0.87%), when the index had topped 51,000 and the spread between BTPs and Bunds had fallen to 105.3 points. The rest of Europe lost less: Paris closed at −1.22%, ANSA reports. What weighs on Milan is its large share of banks, which hold a lot of government bonds on their balance sheets and suffer when their prices fall.
In the evening the agency describes “stocks, bonds and euro plunging” and a warning from the International Monetary Fund on public debt. The details of the IMF’s warning have not yet been confirmed by other sources: we will report them when they are public. The euro fell toward 1.118 dollars, after climbing back above 1.125 on Tuesday evening. The closing level of the spread is not confirmed by two sources; all we know is that it rose throughout the day.
The backdrop is a Europe that has to finance a lot of debt at a time of high interest rates. Il Sole 24 Ore notes that in 2026 European governments will place a record 1,440 billion in government bonds. La Repubblica analyzes the “three options for the ECB” in the face of the debt crisis, with France at the center of concerns; in Paris, Marine Le Pen has presented her own counter-budget with retirement at 62 and lower taxes, Corriere recounts. European gas rose above 78 euros per megawatt-hour according to ANSA, and oil stocks are doing well with the rise in crude, Il Sole writes. For anyone with a variable-rate mortgage or government bonds in their portfolio, the question for the coming days is just one: whether Wednesday’s flare-up stays an episode or becomes a trend.