On the eve of the ECB's decisions, European stock markets are advancing in positive territory thanks to the boost from industrialists and utilities. In Milan, the Ftse Mib index +1% rises to 17.200. Only Madrid does better +0,8%. Paris advanced by 0,2%, ahead of London +0,1%. Frankfurt marks +0,3%, despite the new and unexpected (at least in proportions) new sign of slowdown in German industry: Germany's industrial production in July fell by 1,5% on the previous month, against expectations of + 0,1%.
The travel sector is under fire in Europe. Under pressure from the travel sector, Deutsche Bank downgraded ratings on EasyJet and Ryanair to 'hold', and on Air France-KLM and Lufthansa to 'sell'; the four carriers lost between 0,13% and 3,1%. The bond market was strong with the ten-year Bund yield at -0,11% and that of the BTP at 1,09%. Both are near all-time lows ahead of tomorrow's ECB meeting.
Oil stocks are still positive. Eni +1%, Tenaris +1,3%. Brent gains 0,9% to 47,7 dollars a barrel. In the spotlight Enel +1,5%: Goldman Sachs has raised its recommendation to Buy and has included the stock in its Conviction Buy List. The target price is 5,30 euros. The investment bank has updated its assessments on sector stocks:
– Terna +0,5%: target price at 5,25 euro from 4,95 euro, Neutral rating confirmed. Snam -0,3%: Goldman Sachs raised the target price to 5,5 euros from 5,4 euros, confirming the Neutral rating.
– A2a +0,5%: Goldman Sachs raised the target price to 1,47 euro from 1,37 euro, confirming the Buy rating.
The banking situation improved at the end of the morning. Unicredit from an initial -3,3% returns to parity. Little move Monte Paschi: Prime Minister Matteo Renzi said he is convinced that the conditions exist for the bank's capital increase to be done within the year. The possibility of involving private investors in any proposal for the voluntary conversion of subordinated bonds into shares also seems excluded. The hypothesis was excluded by the advisors Mediobanca and Jp Morgan.
Banca Pop Milano +0,28%, Banco Popolare +2,3%: the ECB's go-ahead for the merger between the two popular banks could arrive by the end of this week. The Governing Council of the ECB will be held tomorrow which should ratify the proposal of the supervisory boards. The management meeting of Pop Milano, scheduled for yesterday afternoon, has been postponed to 12 September.
Weak asset management. Soul -1,15%, Azimut -0,1%, FinecoBank -0,8%. Leonardo stands out among the industrialists +2,2%: after signing a letter of intent with the Polish Pgz. Stm +2,1%, Fiat Chrysler +1%. Cnh Industrial falls -1%: Deutsche Bank has started hedging with a Sell recommendation and a target price of 6 dollars. Instead, Recordati takes off +3,1%.
Telecom Italia drops by 0,9%. Atlantia +1,8%: traffic on the Italian motorways in the July-August two-month period grew by 2,9%, better than analysts' expectations.
