European stocks suffer a setback after the highs of the last three weeks, in the wake of weak data from China on manufacturing activity and the latest signs of friction between Washington and Beijing on the trade front. Business Square yields 0,68%, slightly worse than Paris -0,6%, braked by Dassault System which acquired control of the American company Medidata for 5,8 billion dollars. Frankfurt -0,5% benefits from the jump of Axel Springer +12,3% after the private KKR, already holder of the majority, offered to buy the minority shares at 63 euros per share, with a premium of 40% compared to the market price. London -0,66%. The pan-European STOXX 600 index fell by half a point under pressure from the tariff-sensitive tech sector, which fell 0,76%. Trade into the negative stmicroelectronics down 1,7%.
Good news coming from the auctions of government bonds. The Treasury awarded Annual bots expiring 12 June 2020 for 6,5 billion euro against requests for 9,993 billion. The yield fell to 0,069% from 0,122% in its mid-May placement. In the morning, the Treasury also started the placement of the new 20-year BTP, maturing on 2040st March 16, with initial yield indications in the area of 2038 basis points on the 14 BTP, then revised to 2038 basis points on the 16 BTP, and with orders amount to 3 billion. The new bond could have a nominal coupon well above XNUMX%.
The BTPs showed a slight recovery compared to the start of the session which saw the spread jump to 263 basis points from 255 at the last closing, to settle at 262 basis points after the auction. An analogous trend also for the 2,39-year reference rate which, starting at 2,32% (from 2,38% last year), settled at the same time at XNUMX%.
Mario Draghi, who spoke at an event in Frankfurt this morning, did not speak about monetary policy. But on the other hand, in the last few hours, some members of the ECB's governing council have expressed their willingness to new stimulus measures, including an intervention on the cost of money, if needed. After Olli Rehn and Peter Kazmir, this morning it was the turn of the president of the French central bank, François Villeroy.
Il Petroleum WTI loses 2,8%, to 51,8 dollars a barrel. The news of the extra supplies granted by Saudi Arabia to some Chinese buyers also contributed to the downside. But above all there are the advances on the figure for oil stocks in the United States, the API (American Petroleum Institute) expects an increase of almost five million barrels.
Oils slow down: Eni -1,2% Saipem -2,8% and Tenaris -2,5% which announced its withdrawal from the Buenos Aires Stock Exchange..
Sharp new denial of Atlantia -0,4% regarding an alleged interest in Alitalia. It also slows down Tim -0,6% which, according to the Sun 24 Hours, could acquire 50% of Open Fiber in the hands of a valuation (card against card) of 2,5 million euros, much lower than the estimate by Enel +0,6% which controls the rest of the capital. The electric giant is renewing the agreements with Algeria for the import of gas.
Italgas -0,8%, expects to invest 4,5 billion euros over the industrial plan to 2025 announced this morning, the previous plan contemplated four. The company will allocate 500 million euros to the methane supply of Sardinia. No news on the dividend.
Slows fca -1,7%: the match between Renault and Nissan could be decided in the next few hours.
In the rest of the list:
Sale Gima TT +5% but goes down Ima -2,3%. The boards of directors of the two companies approved the merger plan by incorporation of Gima TT into the parent company Ima, which had taken it to the Stock Exchange at the end of 2017 at a price of 12,5 euros. The exchange ratio was determined as 11,4 IMA shares for every 100 GIMA TT shares. The terms of the operation provide for only a premium of 8,5% compared to yesterday's price, equal to 7,74 euros.
