ONLY ITALY CLOSES IN THE RED -0,70%
BTP UP OVER 6% ON THE EVE OF THE AUCTIONS
Milan recovers part of the decrease but the balance remains very negative. L'Ftse/Mib index, after falling 2,5%, recovered some ground but Business Square -0,70%, closing at 12979, the eurozone's tail light remains under the fire of speculation.
The pressure remains high especially on government bonds: the ten-year BTP yield remains stable above 6% after yesterday's sharp rise in yields, with a spread against the Bund at 474 basis points. But during the afternoon there was also a rapid surge towards 490 basis points of the spread with the yield on Italian ten-year bonds at 6,3 percent. The differential between the benchmark securities of Italy and Germany has thus returned to its highest level since last January, while the Spanish Bonos set all-time records: spread at 544 points and yields at 6,84 per cent after the cut by Fitch .
The words of the spokesman of the EU Commission who a little while ago said he was optimistic about the reforms being implemented in Italy were not sufficient to limit the effect of the rating downgrading of 18 Spanish banks by the rating agency Fitch. Especially since in ECB report on financial stability, published this afternoon, hints at “a potential worsening of the crisis on the public debts of the countries of the euro area”.
Fitch stressed that the situation of Italian banks is very different from that of Spanish banks, whose bailout was announced, with a loan of up to 100 billion euros, by the European Union. This was stated by the director of Fitch's sovereign ratings department Ed Parker. “Italian banks didn't have a credit boom and a real estate bubble… so we don't see these kinds of problems in Italy,” Parker explained, according to whom the Spanish bank bailout doesn't have a direct impact on other countries, including Italy.
In the afternoon volatility also affected other European markets: Frankfurt it managed to drop 1% to then return to parity and close at +0,33%. On positive ground London +0,76%, balanced Paris +0,14%. Positive as well Madrid a + 0,08%
The euro is unchanged against the dollar at 1,246.
In the afternoon Angela Merkel he declared before the assembly of Christian Democrats in Berlin that "we need more Europe" and "we must be ready to cede national sovereignty". The German chancellor added that "borrowing new funds is not the solution to the crisis".
Usual, it was the banks that paid the heaviest duty: Intesa – 3,73%, Unicredit -3,95%, Banco Popolare -1,81%, Ubi -2,94%, MontePaschi -5,88%. Popolare dell'Emilia drops by 3,4%.
The spokesman of the EU Commission, Olivier Bailly, said that Brussels is optimistic "on the reforms that the Italian authorities are implementing" adding that he did not want to comment on the evolution of the markets.
After saving the Spanish banking system, announced over the weekend, the euphoria lasted for Monday morning and speculation has now returned to attack Italy.
Among the insurance companies unchanged Generali.
Afternoon high voltage also for the fate of Ligresti galaxy while theshareholders' meeting of the Premafin holding -3,7%. FondiariaSai drops by 4,4%, Milan Insurance loses 4,4%.
In the industrial sector it remains clearly negative Fiat Industrial -1,52% on rumors that the group is studying an offer to buy the American truck maker Navistar. Fiat -1,22%.
In decline Finmeccanica -0,85% and StM.-0,23%. Among the stocks in positive closing there are Lottomatica +1,3% and Diasorin +2%. Among the mid caps, Hera rose by 1,4%, supported by the new buy recommendation from Citigroup. Of note is the sharp decline of Piaggio -6,8%, after Equita removed the stock from its mid-cap portfolio.
We need "more Europe" and "we must be ready to cede national sovereignty". This is what German Chancellor Angela Merkel said when speaking at a Christian Democrat congress in Berlin. According to Merkel "simply borrowing new funds" is not the solution to the European debt crisis and it is crucial that the States continue resolutely along the path of the reforms undertaken. "It would be fatal", said the chancellor, to leave the reforms halfway. And if Germany's economy "is in very good shape" it is precisely because it has completed its reform program over the years. Regarding the way forward to get out of the crisis, Merkel explained that if you want to have a sharing of losses, then you must have a sharing of control mechanisms. Specifically, with regard to Spain, Merkel explained that the aid is conditional on a reform of the Iberian banking system even though she, she acknowledged, was fully within Spain's right to ask for help for her institutions.
