Charge without brakes the Bull in Piazza Affari, triggered by S&P's judgment of downgrade risk. The promise of measures to guarantee the banks does the rest. But to move the price lists are also the novelties in sight on the European chessboard a few months from the European ones. After the defeat in the elections in Hesse, Angela Merkel has made it known that she intends to remain chancellor until 2021 but according to sources inside the party she will not run again for the chancellery or as a deputy.
These changes translate into a robust rebound in prices: Milan is up 2,44%, a good deal above 19.100 points. Strong increases also in Frankfurt +1,96, London +1,8% Robust increases also in Madrid +1,2% and Paris +1,1%. Still down the euro to 1,138 against the dollar (-0,2%) after the defeat of Angela Merkel in the elections in Hesse.
The 3,35-year BTP rate fell to 3,44% from 3,32% at the end of Friday's session, after reaching 294% at the opening session, its lowest since the end of September. The yield spread narrowed to 309 basis points from 2013 points from its 342 peak to XNUMX points in mid-October.
The yield on six-monthly bonds at auction this morning fell by 5 basis points: 0,159%, for a coverage ratio of 1,60 for the 6 billion on offer.
Brent oil down to 77,3 dollars a barrel, from -2,7% last week. Both Eni +1,9% and Saipem +2,53% participate in the general increase in the price list.
Milan's impetuous rebound is driven by the banks. The sector index leapt by 2,8%. Among the most popular in the rebound, Banco bpm + 4,6% Ubi + 5,5%. Bper +5,27% at the center of hedge coverage. Well bought also the big ones: Understanding + 3,6%. Unicredit +3,9%. The consensus for the third quarter accounts indicates an average net profit of 907 million and revenues of 4,771 billion, as stated on the bank's website.
At the head of the Ftse Italia Banks there is Mount Paschi up 9% on the wave of indications emerging from the two deputy prime ministers on possible bank combinations.
Even more euphoric Banca Carige +10,9%, another high-risk institution.
Recommended Ansaldo Sts +8,9% to 12,64 euros. Hitachi, the majority shareholder of with 50,772%, has reached an agreement to purchase Elliott's entire 31,794% stake at €12,7 per share and the consequent launch of a tender offer on the remaining shares, with the aim of delisting the group.
The euphoria also affects the automotive industry driven by the leap forward of Volkswagen +6,5%. They follow closely Fiat Chrysler +3,4% and Ferrari +2,6% in line with the increase of the other European companies in the sector. Bloomberg reports that Chinese authorities are considering cutting the tax on the purchase of cars in an attempt to jump-start demand.
Tim +2,46%, favored by the decrease in the spread and by Bolsonaro victory in Brazil which projected the Rio de Janeiro stock market to rise for six weeks in a row. Also Atlantia +2,8% – after the agreement on Abertis – can take advantage of the policy of the new Carioca president in favor of a privatization policy.
Mediaset+3,1%. Simon Fiduciaria, behind which there is Vivendi, contested two resolutions passed on 27 June by the ordinary shareholders' meeting.
On positive ground:
- Prysmian +4,33%. The Chinese subsidiary YOFC recorded a strong slowdown in turnover during the last quarter.
- Stm +4,76%. In September, global chip sales rose 14% year on year, slowing down from the growth rates of the previous months: August +15%, July +17%, June +20%.
- Snam+1,6%. The go-ahead from the government has arrived for the construction of the TAP gas pipeline.
Down Leonardo-1,6%. The helicopter that crashed outside the Leicester stadium in central England on Saturday was an AW169 built by Leonardo's subsidiary Agusta Westland.
Outside the main basket they advance sapphire +5,4% and Isagro +6,1%. Banca Imi reiterated the Buy judgment, target price at 2,10 euros.
