The stock market week closes on a high note, with all the lists growing, after yesterday's discouragement and thanks to a series of positive economic indicators. From Tokyo to New York, from one meridian to the other, the day is geared towards optimism.
Milan takes the lion's share, with the Ftse Mib at +1,98%, supported by exuberant banks and insurance companies: in the foreground are Banco Popolare (+6,25%) and Popolare di Milano (+6,08 %), on the eve of the latter's shareholders' meeting, for a merger that convinces the market. The Bper is in the wake with a leap of 5,23%, Ubi Banca +3,48%, on the day of the meeting where Victor Massiah, responding to shareholders, he reiterates “if there isn't any creation of value, we won't do the operation. Our mission is not to save someone but to create value for shareholders". The assembly, with 91,8% of the votes, approves the creation of the single group bank through the incorporation of seven subsidiaries.
Stocks in the banking and insurance sectors staged an effervescent performance: Unipolsai +5,3%, Unipol +5,48%, Intesa San Paolo +2,75%, Mediobanca 2,48%, Unicredit +1,94%. All Blue Chips carry the plus sign in front, except Atlantia which floats exactly tied. Handbrake slightly applied only for Ferrari (+0,29%), Recordati (+0,77%), Mps (+0,23%).
According to Bank of America-Merrill Lynch, Italian banks would be penalized today by Deutsche Bank's problems, but the broker believes that in the next twelve months Italy should accelerateeven leaving other eurozone countries behind. Meanwhile, according to press rumors, the ECB is considering raising the minimum capital requirements for about thirty European banks including Unicredit and Carige. A capital increase of up to 13 billion euros is assumed for Unicredit, over 500 million for Carige.
On a global level the the first encouraging sign of the day comes from China, with inflation growing more than expected: +1,9% for consumption in September, +0,1% for producer prices.
Many hours later, in our afternoon, the positive opening of Wall Street gives a further upward push to the European stock exchanges. New York is driven by a series of better-than-expected quarterly earnings: Citigroup, profit of 3,84 billion dollars, revenues of 17,76 billion dollars; Wells Fargo, the San Francisco bank overwhelmed by the scandal for the 2 million ghost accounts, with profits of 5,64 billion dollars, turnover of 22,33 billion; JP Morgan, profit of $6,29 billion, revenues of $25,51 billion.
Many i US macroeconomic data disclosed during the day: +0,6% retail sales in September, in line with estimates; +0,3% in production prices, again in September, above estimates; The consumer confidence index, on the other hand, disappoints. All in anticipation of the speech by Fed number one Janet Yellen who is speaking at the Boston Fed Conference in these hours, while bets are flocking on a rate hike in December.
Today even the Bank of Italy, in its quarterly Bulletin, traces a quite comforting economic and financial picture for our country. The credit quality of Italian banks is improving and the flow of new non-performing loans "has fallen to the levels observed at the onset of the global crisis". The banks participated in the ECB's second Tltro2 financing operation, held last month, requesting funds for "a little more" than 17 billion euros, about 16 billion net. The total requests in the two Tltro2 operations conducted so far amount to 156 billion, 46 net of the funds obtained through the old Tltro1 loans which have been repaid in advance.
GDP estimates are up slightly, between July and September, after the flat performance of the second quarter. While foreign investments in Italian public securities remained positive for 15,1 billion and Italian bank bonds in the portfolio of non-residents decreased (-21,1 billion since the beginning of 2016) "following redemptions not offset by new issues, in line with the reduction of wholesale bond placements by resident banks”.
Also today it was disclosed by the Treasury the guaranteed minimum coupon, equal to 0,35%, of the new Btp Italia, whose bidding will take place next week. The placement of the title, at 8 years, will be reserved for retail investors between Monday 17 and Wednesday 19, with the possibility of reducing the period to two days; requests will be satisfied in full. On the other hand, the offer to institutional investors is limited to the morning of Thursday 20, with the Treasury having the right to allocate the requests.
Moving on to the raw materials: oil soar in New York, where opening prices rose by 0,79% to 50,84 dollars a barrel. Petrobras, the Brazilian public oil giant, announced an alignment of its pricing policy to market rates, with a consequent drop of 2,7% in the price of diesel and 3,2% in that of petrol in refineries.
coins: the dollar is the main protagonist, with a weekly positive balance of more than one percentage point against the basket of the main world currencies, supported by expectations of a rise in exchange rates. During the week, the greenback gains around 1,6% against the euro.
