Another record for Wall Street, boosted by the good start to quarterly earnings. Another step forward by the Japanese Stock Exchange, pending the expansive measures that the Bank of Japan will take at its meeting on 29 July. Fateful date, because the results of the stress tests on European banks, including Monte Paschi, will arrive on the same day. But the deadline, thanks to Angela Merkel's openings, is less scary. As well as Brexit: today Theresa May enters Downing Street, the new British prime minister who will have to defuse the crisis.
Well, for once, good news abounds. And Taurus takes advantage of it. The American Stock Exchange set new records: the Dow Jones reached the all-time high at 18.346,98 (+0,66%), as did the S&P 500 index at 2.152,14 points (+0,7%). The Nasdaq (+0,70%) climbs back above 5,000 points, for the first time since the close of 2015 (5.022.82).
Alcoa's rise (+5,4%) augurs well for the accounting season for US companies, inaugurated as per tradition by the aluminum giant. The market is now awaiting the quarterly reports of the big banks, starting with that of Jp Morgan (+1,5%) scheduled for tomorrow. Meanwhile, the giant led by Jamie Dinon has announced an increase in minimum wages for 19 employees. Meanwhile, financial stocks lead the Wall Street rally: Morgan Stanley +3,4%, Citigroup +2,8%, Goldman Sachs +3,1%.
The return of risk appetite drove the 1,48-year Treasury yield back to 1,42%, from 81% yesterday evening. The spread between ten-year and two-year bonds widens to 75 basis points, yesterday it was 2007 basis points, the lowest since 0,8. Gold is also slowing down, falling by 1.342% to XNUMX dollars an ounce.
TOKYO CONTINUES THE RALLY, YEN DOWN 4% FROM MONDAY
In the meantime, the Nikkei index continues to run in Tokyo (+1%), now on its fourth consecutive day of gains. The yen is still down (-4% since Monday). Even the visit to Shinzo Abe by Ben Bernanke, the former Fed governor to whom we owe the image of helicopter money (put money in people's pockets to boost consumption) was interpreted as a sign of new expansionary moves. The other price lists of the region are traveling in positive territory: Sydney +0,3%, Hong Kong +0,4% on a par with Shanghai.
MILAN RECOVERS, BUT STILL LOSING 22% FROM JANUARY
In Europe the most positive notes come from Milan. Expectations of securing the Italian credit sector pushed Piazza Affari upwards: the Ftse Mib index rose by 2,8% to 16.721 points. Thanks to the recovery of the last three days (+9%), the decrease since the beginning of the year is reduced to -22%. The other markets were more cautious: Frankfurt +1,3%, Paris +1,5%, Madrid +2,3%. Against the trend, London (-0,1%), conditioned by the rebound of the pound, rose to 1,3273 against the dollar (+1,89%) on the fourth consecutive day of rise. Today Theresa May will become the new prime minister of Great Britain.
TODAY THE FIRST BUND WITH ZERO COUPON HAS BEEN STARTED
The race to the bottom of yields continues. The 12-month BOT auction hit a new all-time high yesterday with negative yields of -0,176% from -0,122% in June. Today it's up to medium-long term issues, from three-year to twenty-year BTPs.
For the first time, the coupon of the new 15-year Bund on 2026 August 5 was set at zero percent at auction this morning. The new German government bond will be offered for an indicative amount of XNUMX billion euros.
UNICREDIT GOES AN ENOUGH: AFTER FINECO IT'S PEKAO'S TURN
Unicredit strengthens in the final and closes with a gain of 13,5% at 2,10 euros. But, for the second time in a row, the real surprise comes with closed markets. The institution has launched an offering through accelerated bookbuilding of 10% of the subsidiary Bank Pekao up to approximately 10% of the company's current capital. Before the operation, Unicredit controlled 50,1% of Pekao. On 23 June, Polish Treasury Minister Dawid Jackiewicz said that the government is interested in purchasing Pekao to strengthen public control over the banking sector, which is currently 60% in the hands of foreign investors.
Thus continues the therapy of CEO Jean-Pierre Mustier, who revolutionized the institute in just 48 hours. Yesterday the Milanese bank completed the placement of 10% of Fineco (-1,2% to 5,68 euros) collecting a total of 328 million euros. The shares were offered at a price between 5,30 and 5,40 euros, with a discount of around 6% compared to the closing prices of the previous session (5,75 euros).
MPS ON THE SWING, UBI SUPERSTAR
Not just Unicredit. The rebound extended to the entire financial sector. A day characterized by maximum volatility for Monte Paschi (+3,7% at the end, at 0,31 euro). In the early stages, the stock had been suspended due to excessive downtrend with a minimum of 0,29 euros. The trend was obviously linked to the news arriving from Brussels: the Northern European partners reiterated their opposition to revising the bail-in rules, but are ready to identify a valid solution for MPS, to avoid systemic risk. Various interventions are being studied starting from the creation of a securitization vehicle to which bad debts can be transferred. Some international institution could be involved together with the Atlante fund, perhaps JP Morgan itself.
The other credit institutions were also in great evidence yesterday: Ubi Banca +11%, Intesa Sanpaolo +6%, Banco Popolare +6% and Banca Popolare dell'Emilia Romagna +8%. Management and policies are also good. Azimut is up 5% to 14,63 euros. Credit Suisse confirmed the Outperform recommendation, while limiting the target to 20,20 euros from 21,40 euros, a level that is still higher than current prices. Strong growth of Anima (+7,35%): Kepler Cheuvreux who confirmed his positive view on the stock (buy, Tp 7 euro).
The entire European insurance sector is up sharply: +2,6%. Generali closed up 5%, at 11,22 euros. In the last three sessions, the company has gained 14%, returning to the levels of June 24th
ANGELA MERKEL: ITALIAN BANKS, IT CAN BE DONE
In addition to the reassurances of Matteo Renzi and Pier Carlo Padoan, the declarations arriving from Germany play in favor of optimism on the banking front. A half green light for public intervention in support of Italian banks came directly from Angela Merkel. The chancellor said she does not expect any crisis in Italy deriving from the need to recapitalize some of the country's banks.
Speaking on this issue on the day of the meeting of finance ministers of the euro area, the German premier said she was convinced that the issues that must be addressed and will be resolved in a positive way: "I don't see any critical developments overall". Wolfgang Schaeuble added that he sees no risk of a banking crisis: "The EU rules - he said - offer enough leeway for a decision to be taken on Italian banks".
RCS, TIME FOR THE COUNT. EDITORIALS IN RUN
Publishing is in great evidence, three days after the verdict on RCS Mediagroup (+0,8%). The count of the first titles that have responded to the appeal of the competitors has already begun. L'Cairo OPAs accounted for subscriptions for 49,2 million shares, equal to 9,5% of the share capital. To date, 8,24 million shares, equal to 2,1% of the capital, have been delivered in the takeover bid by the team headed by Bonomi. The challenge will end at 17pm next Friday.
The battle is good for other titles in the sector. The race of L'Espresso continues (+2,27%, after +9% the day before) ahead of Mondadori (+0,27%). Mediaset gained 3,19%, to 3,428 euros. Ubs brought the target price of 4,85 to 4,35 euros. Sale Banzai (+12,6%) ahead of ItaliaOnline (+6%).
FCA ADVANCES IN TRAIL OF DAIMLER
Daimler's accounts (+4,40%), much better than forecasts, pushed the automotive industry. Fiat Chrysler advanced by 4,08%. Weak Recordati (-0,6%), less affected by the general rebound, given that in the last few weeks of turbulence it defended itself better than the other stocks, actually achieving a positive balance since the beginning of the year (+16% approximately).
