The Milan Stock Exchange (+2,3% just before midday) leads the race of the European Stock Exchanges thanks to the push of the banks: the Ftse Mib index is once again approaching 16.000 points. There is a bet on public intervention, perhaps as early as the weekend, in favor of the most exposed banks, starting with Mps.
The others are also on positive ground price lists of the Old Continent but with lower increases: only Madrid with +1,1% boasts an increase of more than one percentage point, while the only one in negative territory is London -0,11%.
On the currency front, the GBP it moved little against both the dollar and the euro (1,107 against the US currency). Attention is focused on the US occupation dollar for June, due out at 14.30 pm Eastern time. The yield on the 0,17-year German Bund stands at -XNUMX%, very close to the all-time low.
Il Petroleum Brent is up 0,9% to 47 dollars, yesterday it lost almost 5% after data on US inventories. Among the oil companies, Saipem advances +1%. Barclays brought the recommendation to Overweight from the previous Underweight. Eni -0,2%. The managing director Claudio Descalzi declared himself optimistic about the sale of an approximately 20% stake in the Zohr field. Tenaris -0,5%.
The attention of Piazza Affari is always focused on the banking account. There Bank of Italy is in favor of public intervention for Italian banks in the current tense situation on the markets. Governor Ignazio Visco said it at the end of his speech at the Abi meeting: "It is expected that other joint initiatives will take place in the short term". According to the Bank of Italy, Brexit could cause a drop in the order of a quarter of a point of GDP in three years.
Mount Paschi +4,9%, thanks also to the shield of the ban on short selling until October 5th. The bank is preparing to get rid of at least 10 billion euros of non-performing loans, a flash operation to be closed within a couple of weeks. Following the sale, a capital increase of at least 3 billion euros should then be launched, an operation that would see the State play a strong support role, it is not yet clear how. It seems that the maneuver will spare the bondholders.
Also rising sharply Banco Popolare +8,8% rebounding from the all-time low of 1,756 euros. The institute has conducted internal stress tests following the dictates of the ECB and has passed them, said a note from the bank in response to negative considerations from Morgan Stanley. A note specifies that the bank "can anticipate having conducted an internal stress test by applying the guidelines, indications and criteria established by the EBA and that this exercise, contrary to the misleading report by Morgan Stanley of 6 July 2016, confirms the Banco Popolare's resilience in the face of the adverse scenario".
Unicredit +5%. The purchases are supported by positive expectations of a rapid resolution of the serious problem of doubtful credits which should see massive intervention by the public. Last Tuesday Goldman Sachs raised its rating on Unicredit to Buy from the previous Neutral. Target price confirmed at 3,50 euros, practically double compared to today's quotation.
Vola Intesa Sanpaolo +4,7%. On the sidelines of the Abi meeting, CEO Carlo Messina said that the bank will pass the stress test and that Atlante will help solve Montepaschi's problems as well. Yesterday Exane BNP Paribas raised its recommendation to Outperform from Neutral. The target price is set at 2,60 euros. It is the first time since September 2012 that the French broker recommends the purchase.
Ubi Banca also up +2,5% and Pop. Emilia-Romagna +3,5%. To the rescue Generali +3%. Mediobanca has raised its recommendation to Outperform from Neutral. Unipol +2%. Asset management also rebounds: Azimut +1,5%.
