BANKS AND CARS IN DEEP RED. 6 BOTS PLACED AT FALLING RATES
The Treasury has assigned all 9 billion BOTs in six months with rates still declining and with good demand. The average yield on the semi-annual bond fell to 1,503% from 1,585% last month, the lowest since March. The question was equal to 1,39 times the amount offered against the previous 1,69. After the positive outcome of the offer, the spread between the Italian and German ten-year bonds returned below the threshold (364 points) after a flare up to 370 points.
The decline in the euro continues, trading against the dollar at 1,287, from 1,289 at yesterday evening's close. On the other hand, the uncertainty surrounding the measures to relaunch the world economy continues to weigh on the stock market. In Milan, the FtseMib index lost 2,41% to 15547, London fell by 1%, Paris -1,96%, Frankfurt -1,47%, Madrid -2,34%. The statements of Charles Plosser, president of the Philadelphia Fed, weigh on the markets, who yesterday said that the recent US economic stimulus package (QE3) will not do much to boost growth and employment, but risks creating inflation in the long term and to compromise the reputation of the US central bank itself.
Sales are spread over all sectors: the most marked losses are for car manufacturers (Stoxx of the sector -2,1%), for banks (-2%) and for insurance companies (-1,7%). In Frankfurt Volkswagen drops by 2,75%, BMW by 1,10%. In Paris, home to the motor show, Peugeot and Renault both fell by 3,56%.
Fiat is down 2,89%. Pirelli -1,9% Finmeccanica -2% Prysmian -2%. Bigger discount for StM which loses 3%. Enel marks a decline of 2,3%, Telecom Italy -2,1%. Difficult morning also for the world of credit in Italy and in the rest of Europe. In Milan unicredit, which drops by 3,6%, fares best of all. The Banco Popular loses 4,94%, Ubi -4,45% Understanding -4,14% Montepaschi -4,52%. Banking Popular di Finally, Milan is down 4,77%.
In the European panorama Deutsche Banks loses 4%, Bnp Baribas -2,9% ubs -2,8%. The decline in the euro continues, trading against the dollar at 1,287, from 1,289 at yesterday evening's close. Weak oil: WTI drops to 90,7 dollars a barrel (-0,6%), Brent to 109,7 dollars (-0,6%). In the business square Eni it loses 1,5% and the decline in crude oil also sinks the other stocks in the sector Oil: Saipem –1,7%, Tenaris-1%.
