Italian stocks jump 3% after reforms vote

Italian stocks jumped more than 3.0 percent on Friday after lawmakers gave initial approval to a package of economic reforms including privatisations in a bid to calm market turmoil over the country's massive debt. The benchmark FTSE Mib index rose 3.32 percent to 15,723 points after the Senate vote. Prime Minister Silvio Berlusconi has said he will resign after final approval of the reforms by the lower house -- expected on Saturday. The rate which Italy must pay to borrow money for 10 years also eased on Friday to 6.659 percent, holding below the level of 7.0 percent which was breached at the height of the government crisis earlier this week. Interest rates of about 7.0 percent are widely considered to be too high for Italy to finance its public deficit and carry its debt. In Berlin, the head of the eurozone crisis fund called on Italy to act swiftly to reassure markets about its financial and political stability. He also said the fund was ready to help Italy immediately if it was asked. Friday's gains were by lenders Banca Popolare di Milano and Intesa Sanpaolo, engineering giant Impregilo and Telecom Italia, which announced a sharp rise in profits for the third quarter.