Stocks soar within hours of first congressional testimony by Janet Yellen which, according to the advances of "Politico", is destined to give way next year to Gary Cohn, a collaborator of the White House. The Fed chair could partially anticipate the timing and modalities of the cuts to the central bank's balance sheet.
A Milano the Ftse Mib index recorded an increase of 1,1%, over 21.300. Rises of 0,9% a Paris e London, around 0,6-0,7% a Frankfurt e Madrid. Eurostat has announced that industrial production in the euro area grew by 1,3% on a monthly basis and by 4% on an annual basis in May, clearly beating consensus expectations of +0,3% month on month.
The good performance of today's debt auctions favors the rise of the markets. The Tesoro placed all of the €6,75 billion in one-year BOTs (first tranche) on offer today with rates falling to new all-time lows. The average yield fell to -0,352% from -0,351% at the June auction. Demand reached 11,125 billion euros with a coverage ratio rising to 1,65 from the previous 1,58. The ten-year BTP trades on the secondary at 2,27%, from 2,30% yesterday.
Il Waist at 10 years it trades at 0,58% from 0,60% yesterday. Germany has placed 4,01 billion euros of 10-year bonds, at an average rate of 0,59%, more than double the yield of the last auction of an equivalent bond, which took place about a month ago. The Portugal it placed 685 million euro of 10-year bonds and 315 million of 28-year bonds. There Greece placed 812 million euro of 13-week bonds.
The markets seem to absorb the stocks without major problems latest developments in the Russiagate investigation. The president's eldest son, that is Donald Trump Jr, agreed in 2016, during the US presidential election campaign, to meet with a woman lawyer, linked to the Russian government, who allegedly had information capable of damaging Democratic candidate Hillary Clinton in the context of the Kremlin's official support for Trump. It was Donald Trump junior himself who spread the emails.
Il dollar it lost ground against the euro, which rose to 1,145. The rise in oil continues, with Brent rising by 1,7% to 48,4 dollars a barrel, gaining 1,4% yesterday. The US government reduced its crude oil production forecast for 2018. Meanwhile, weekly inventories decreased by 8,1 million barrels to a total of 495,6 million. Eni + 1,5% Saipem e Tenaris + 1,4%.
Positive ones banks after the first go-ahead from Ecofin to the creation of national agencies dedicated to the disposal of NPLs. The establishment of a national Bad Bank, he said this morning Governor Ignazio Visco at the ABI meeting, will be successful provided that the active transfer price is not “too far from their real economic value”. The president of the bankers, Antonio Patuelli, instead asked that the prudential rules arriving for banks, with the adoption of the additional requirements for the liabilities necessary to deal with a bail-in and the new international accounting rules, do not translate into new capital calls. Furthermore, the conversion into law of the decree on the rescue of the Venetian banks should arrive today.
Unicredit (+1,2%), Intesa (+0,3%) and Banco Bpm (+0,9%) advance in Piazza Affari. Positive for Generali (+0,6%): Barclays confirms the negative Underweight recommendation and lowers the target price to 12,8 euros from 13 euros.
In asset management they shine Azimuth (+ 2,5%) and General Bank (+2%). The company raised its estimates for this year's inflows to $5-5,5 billion from the previous range of $4-4,5 billion.
Telecom Italia is also making progress (+2%). Yesterday, CEO Flavio Cattaneo denied the hypothesis of resignation and affirmed that he intends to remain until the end of his mandate, in 2020. According to Equita Sim, the CEO's "will" "to stay is a positive point because we believe it is important that the plan is defended by whoever formulated it (and has started well in terms of execution)”. Equita confirmed the buy recommendation and the target price of 1,3 euros on Telecom. Banca Imi also remains buy on the stock, with a target price of 1,08 euro.
They go up Enel (+ 0,4%) and Terna (+ 0,6%). stm (+2%) leads the rise in industrial stocks. Ferrari +1,2%: Ubs has raised its target price to $100 from $92, the recommendation is Buy. Cnh Industrial +2% following the publication of sales figures for competitor Deere.
On the other hand, Fiat Chrysler is holding back (-0,5%). The US Environmental Protection Agency has pledged to take a hard line with automakers under investigation for violating emissions legislation. Leonardo also down (-0,3%).
In Luxury they recover Yoox Net to Porter (+ 1%) and Tod’s (+1,6%) driven by Burberry (+2,7%) after the 3% growth in revenues in the first quarter, thanks to the robust demand from mainland China and the good performance on the British market. Highlights too Geox (+ 5%).
Salini Impregilo stands out with a gain of 2,6%. The American subsidiary Lane Construction was awarded a 232 million dollar contract in the USA to replace the Unionport Bridge in Bronx County. The work will be carried out by Lane in a joint venture with Schiavone Construction Company.
