The Treasury has awarded all the 7,5 billion euro of Bot per year, by registering a average return down to 2,697% from 3,972% in the mid-June auction. At the origin of the recovery, in addition to the positive outcome of the Eurogroup, there are the recent moves of the ECB, in particular the zeroing of the remuneration of overnight deposits, which stimulated the use of government bonds: in the first entry session In effect of the new rates, Frankfurt's overnight deposits plummeted to 324 billion euros from 808 billion euros on Tuesday.
In the morning, the recovery of Italian government bonds had already begun. But it spread ten-year after the auction, it remains little moved at 450 basis points for a yield of the 10-year BTP at 5,75%.
The success of the auction does not move the stock exchangeswho took the outcome for granted. In Milan, the Ftse Mib index lost 1,09% to 13709.95. Frankfurt -0,83%, Paris -0,46% and London -0,73%. In Madrid, the index marks -1,51%.
The euro remains weak and depreciates against the dollar to 1,220 from 1,223 at the end: the low of the last two years has been renewed.
In addition to the outcome of the placement of the Italian governments, the issues that emerged during the night hold the table. The minutes released yesterday show that the Federal Reserve is divided and uncertain about the measures to support the economy, thus tempering expectations on the arrival of a new bond buyback programme.
Le Asian bags were instead penalized by fears of a slowdown in the Chinese economy, the second quarter GDP should have risen by 7,6%, the most sluggish growth since 2009.
La Central Bank of Brazil he cut the main rate by 50 basis points to an all-time low of 8%, to revive an economy that is showing some signs of slowing. This is the eighth cut in the Brazilian rate, called Selic, since August last year when it was 12,5%.
In Piazza Affari it sinks Telecom Italy with -5%: the Stoxx index of telephone companies of the Eurozone Stock Exchanges is down by 1,5%. To weigh on the Italian price list are also today the luxury companies: Ferragamo -1,6% Tod’s -1% Luxottica -1,9%.
Utilities are down. Enel is down by 2%, Morgan Stanley cut the target price to 2,8 euros from 3,5 euros. Snam it loses 1% on the day a bond is launched: according to what is circulating on the market, the bond should have a duration of around 6 years, the amount is yet to be defined. Terna is down 1,1%, same change for Enel Green Power. It moves against the trend A2A + 1,8%. Eni loses 0,8%: this morning Nomura cut the target price to 19 euros from 21 euros. Saipem it is down by 0,5% while the WTI-type oil future trades at 85,2 dollars a barrel (-0,7%). Tenaris rises by 0,2% thanks to the promotion of Mediobanca to outperform.
