In a volatile and uncertain session, the European stock exchanges managed to close up just above parity. Piazza Affari, the best stock exchange in the Old Continent, gained 0,37% driven by the good performance of managed savings and banks. Paris rises by 0,15%, London, awaiting tomorrow's political elections, archives a prudent +0,09% and Frankfurt +0,20%. The day was characterized by the sell-off on the German 0,53-year, with the yield on the bund reversing its trend and rising to 33%. In one month, according to Bloomberg data, it recovered XNUMX basis points. A physiological repercussion for some observers after the euphoria triggered by Draghi's Qe which had pushed quotations excessively high and yields lowered.
Yields still negative, albeit rising, for the new Shatz, the two-year bond placed today again by Berlin: Germany placed 3,974 billion of its new Schatz in June 2017 at a negative average yield of -0,21% against the previous average yield of - 0,28%. Demand was solid, totaling €6,458 billion against supply of €5 billion.
Meanwhile, the Btp-bund spread is also volatile, flying above 140 basis points and then closing up at 137 basis points according to Bloomberg quotes. The yield of the BTP goes to 1,9%. Tension also on the Spanish Bonos whose spread closes at 134 points and the yield reaches 1,87%.
GREECE, STILL FOG. FITCH LIKES ITALICUM
Greece still leaves the markets in uncertainty. Today he paid the 200 million euro loan received from the IMF and Juncker and Tsipras speak of progress in the negotiations. Just like Yanis Varoufakis who after the meeting with the Italian minister Padoan stated: ”With Padoan we have a common language and a common goal. We had an intense discussion to build a platform for an agreement that resolves the situation and puts Greece on a growth path after June. I am very confident ahead of the Eurogroup meeting on Monday”.
However, in these hours the Greek Parliament has given the green light to the re-employment of about 4 civil servants and civil servants who had been fired as part of the austerity measures imposed by the Troika in the last two years. And the president of the Eurogroup, Jeroen Dijsselbloem let it be known that "many problems still remain to be solved" for which "there will be no agreement next Monday" at the Eurogroup in Brussels.
Italy, on the other hand, collects the approval of one of the rating agencies on the new electoral law which could even lead to an upgrade of the rating. “The passage of the new electoral law in Italy – commented Fitch in a report published today – represents progress along the path of institutional and structural reforms which, if carried forward, would lead to a medium-term strengthening of the sovereign credit profile by reducing the political risk weighs on decisions of a political and economic nature". For analysts, the electoral law should "indirectly support Italy's credit profile by reducing the risk that explosions of political volatility will weaken the ability of governments to implement structural reforms as well as shorten their life". Much now depends on the constitutional reform proposal now under discussion.
Also today, the PMI services index released by Markit/Adaci grew to 53,1 points, above expectations and showing the fastest growth for ten months.
YELLEN IS NOT AFRAID OF THE BUBBLE. PRIVATE EMPLOYEES BELOW EXPECTATIONS
On Wall Street, stock markets continue to decline: -0,43% for the Dow Jones and -0,13% for the S&P500. At a Finance and Society conference in Washington, Fed Chair JAnet Yellen said valuations in equities are "generally quite high" even if there are no signs of bubbles. Today's macroeconomic data did not allow us to find other buying points. The productivity of American workers fell 1,9% in the first quarter compared to the previous three months while it increased by 0,6% compared to a year ago. The figure is slightly below the estimates of analysts who had expected a drop of 1,8%.
At the same time, the US private sector created 169.000 jobs in April, less than analysts expected to create 205.000 new jobs. The official figure is expected on Friday, which also includes public sector employees. WTI oil accelerated higher after US weekly inventories fell 3,882 million barrels to 487 million. At the end of Europe, it rose by 0,41% to 60,65 dollars a barrel. The euro-dollar exchange rate also rose sharply, rising by 1,44% to 1,1346.
NOBODY HOLDS BACK THE MANAGED SAVINGS
At Piazza Affari, the asset management sector stands out after the good data from the collection of some operators. Azuimut recorded positive net inflows in April of over one billion, thus bringing year-to-date net inflows to 2,3 billion. The stock gained 2,46%. the best stock is Banca Mediolanum +2,73%. The banks also did well on the eve of the quarterly results and after the positive report by Credit Suisse thanks to the improved trend both on the macro front and deriving from the reform of popular banks.
Analysts expect a 7% increase in the profits of Italian banks on an aggregate basis compared to the first quarter of 2014. Among the best, Bper +1,97&, Intesa +1,96% and Unicredit +1,84%. Beni Stabili stands out from the main basket with an increase of 6% thanks to the new lease agreement with Telecom Italia and preliminary contracts for the sale of real estate assets for a gross amount of almost 110 million.
At the bottom of the Ftse Mib Atlantia -4,6%, FCA -3,32%, Buzzi Unicem -2,9% and Tenaris -2,18%.
