Piazza Affari changes pace and gallops. After the start of a sharp decline, the Ftse Mib index rose by 1,8% to 13.920 points after having also reached 14.000 dry points. The other European stock exchanges also improved, which in the morning seemed to want to move in the negative wake of the Asian ones.
The rise in Paris (+0,4%) and Frankfurt (+0,6%) is weaker than that of Milan. Tensions on the government securities market eased and the Italy-Germany spread fell to 384 from 390 on Friday evening. The euro rears its head and trades at 1,342 against the dollar, remaining down from Friday night's closing levels (1,350) but recovering from the low of 1,336 reached this morning.
Behind the sudden improvement there could be a change of tone triggered by the mounting expectations on the strengthening of the State bailout fund: the leaders of the European countries, following the advice of Tim Giethner, would have finalized a draft which envisages a sharp increase in financial leverage in capable of tenfold the firepower of the EFSF fund. This morning the president of the central bank of Austria, Ewald Nowotny, said that a rate cut by the ECB cannot be ruled out and that Greece's insolence is not in the scenario on which the central bank thinks.
Recession expectations penalize raw materials, WTI-type oil trades at 78,1 dollars a barrel, down 2,1%. Copper loses 4%. Precious metals, considered a safe haven until a few weeks ago, are falling in a ruinous way. Gold plunged this morning to 1560 dollars an ounce (-6%) and silver collapses (-12%). The banks are running in Milan. Intesa San Paolo rises by 7%, Unicredit +5% rises above 1 euro, Bpm marks +3,3%, Ubi +6%. Generali also rises +3%. +2,4%. Oil companies suffer from the drop in crude oil: Saipem loses 2,5%.
