Tensions with Russia and the wait for the referendum in Scotland (September 18) favor the prudence of European lists which are unable to gain momentum and close in negative territory. Milan closes down by 0,23% after filing a new success in the auction of government bonds. Today the Treasury filled up by collecting 7 billion euros with the Btp auction. The 3-year bonds (2017, coupon 1,5%) were assigned with a yield of 0,52%, down from 0,84% in the previous auction, amount assigned 2,457 billion, supply/demand ratio 1,66 times from 1,49 of the previous auction. The Bto Bund spread closed higher at 146 basis points. The other European lists were also negative: Paris -0,22%, Frankfurt -0,09%, London -0,45% and Madrid -0,47%. Spain is closely watching the outcome of the Scottish referendum where a Yes could rekindle the independence pushes of Catalonia as well. The Russian stock market was also down with the Micex down by 1,29%.
There is a tug of war between Russia and the European Union: tomorrow the sanctions of the European Union will be published accusing Russia of fomenting and supporting the separatist war in eastern Ukraine. Among the measures there would be a tightening on access to European financial markets for a number of Russian companies and banks, a limitation on the export of Russian technological goods and individual measures towards some senior Russian officials, with the limitation of their movements in Europe and the asset freeze. For its part, Russia has already prepared new retaliations: after the import of agri-food products, this time Moscow is targeting the import of cars and light industrial products. Among the major victims above all Germany and Italy.
The 7-year BTPs (2021, coupon 2,15%) were assigned with a yield of 1,71%, down from 2,17% in the previous auction, amount assigned 2,5 billion, supply/demand ratio at 1,46 from 1,35 in the previous auction. The 15-year BTPs (2030, coupon 3,50%) were assigned with a yield of 3,03%, down from 3,44% in the previous auction, amount assigned 2 billion, coverage ratio up from 1,42 at 1,64.
This time Wall Street does not come to the rescue of the Old Continent. The indices opened lower after a disappointing unemployment data released in the afternoon and remain in negative territory: the Dow Jones fell by 0,22%, the S&P500 by 0,12% and the Nasdaq by 0,23%. Unemployment claims rose more than expected for the week ended Sept. 6, rising by 11 to 315 while analysts had expected a slight decrease from 304 to 300. There is anticipation for the Fed's FOMC meeting on September 17-18 after a report from the SanFrancisco Fed revealed that the market underestimates the possibility that the Fed will decide to raise rates sooner than expected. This evening, however, Mario Draghi is in Milan at the Eurofi Forum where he will give a speech. The euro-dollar exchange rate rises to 1,2942 (+0,19%), Wti oil by 0,32% to 91,96 dollars a barrel .
At Piazza Affari Fiat runs with the Ferrari engine: +1,53%. At the moment I don't see a reason to revise the guidance for the end of 2014” said Sergio Marchionne at the presentation of the Jeep Renegade. But the situation could be reviewed at the end of the third quarter. "Let me close the accounts in peace and then we'll see," he replied to a journalist. Since yesterday Marchionne has also assumed the presidency of Maranello following the exit of Luca Cordero di Montezemolo. Today Fitch raised its outlook to stable and confirmed its BB- rating. However, the best title is Tenaris which rises by 2,92% after the promotion of Morgan Stanley which raised the rating to overweight from equal weight. Finmeccanica +1,69%, Telecom Italia +1,41% and Gtech +1,09% are also highlighted among the best.
The banking sector contrasted: Unicredit, Intesa and Ubi closed positive respectively at +0,16%, +0,16% and +0,54%. In red instead Carige -2%, Milan -0,31%, Bper -0,61%, Banco Popolare -0,08% and Mps -1,33%. Today came the expected resignations of two members of the board (Marco Turchi and Paola Demartini) who are leaving to make way for two representatives of the bank's new Brazilian shares which, together with the Mps Foundation, hold 9% armored in a shareholders' agreement.
