New success for the Italian debt. The Treasury sold all 3,5 billion 3-year BTPs, managing to tick off a sharp drop in rates that return to their lowest since March 2010. The average yield on BTPs maturing in December 2015 (third tranche) fell to 1,85% from 2,50% at the December auction. Demand increased, exceeding supply by 1,45 times against the previous 1,36. On the secondary market for government bonds the yield of the ten-year BTP is stable at 4,17%, spread at 261.
European stock exchanges in retreat in the last session of a positive week. The FtseMib index of Milan falls by 0,46%. Down also Paris, -0,39%, and Frankfurt, -0,16%. London almost unchanged, +0,05%.
The news that the Moody's rating agency has cut the credit rating of. contributes to the slowdown Cyprus by 3 notches, to Caa3 from B3, with a negative outlook. The country is now only two steps away from the default level.
The fear of a slowdown in Chinese growth for the rise in inflation on the other hand, it brings down commodity stocks: in London Bhp Billiton loses 2,6%, Rio Tinto 1,9%.
On the currency market there is strong appreciation of the dollar against the euro at 1,326. The single currency also rose against the Swiss franc, to 1,217, the highest since last September.
In Europe Nokia continues its run, +3,6%, with positive effects also for StM, +0,9%. The Stoxx index of the tech sector rises by 1,2%.
As for Piazza Affari, severe punishment for Finmeccanica, -3,93%, and Pirelli, -3,66%. By Tuesday 15 there could be some cancellations to the trade union agreement of the Bicocca group. Only Allianz (4,4%) has not yet dissolved the reserves while the confirmation of Fonsai Unipol and Generali (both 4,4%) is awaited, as well as Camfin (20,3%), which today holds the board of directors, Mediobanca (4,6%), Edizione (4,6%), Intesa (1,6%), Sinpar-Lucchini (0,63%) and Massimo Moratti (0,49%).
But the sales are to be linked to the severe judgment of Goldman Sachs, which cut the recommendation to "sell" from "neutral" and lowered the target price to 8,9 euros from 11,5 euros.
The new estimates assume a price decline of 3% in 2013 and a negative impact of the exchange rate linked to the Brazilian real of 2,5%. “Uncertainty in the tire industry, which is experiencing a decline in prices for the first time in a decade, is increasing,” Goldman Sachs analysts report.
In decline the banks: Banco Popolare -0,98%, Mediobanca -0,93%, Intesa –0,53%, Unicredit -1,35%. Monte Paschi also reverses course -1,28%. Generali falls -0,6% on the eve of the investor day, Unipol rises +0,6%. Among industrialists, Fiat fell by 0,1%, Fiat Industrial -1,43%.
