One eye on Greece and one on Yellen. Thus, the Stock Exchanges experienced a volatile and expectant day which closed in negative territory for most of the main European markets. Paris loses 1,02%, Frankfurt 0,6%, London 0,44%. Milan, which seemed to be on the way to closing in positive territory, failed in the end, however it managed to snatch the plus sign and lost 0,71%. Athens lost 3,1%.
Tomorrow the Eurogroup on Greece is on the agenda but for Pierre Moscovici, Commissioner for Economic and Monetary Affairs, the meeting will not be conclusive. On the other hand, Greek Prime Minister Alexis Tsipras said ready for a “big no” if the agreement should be “bad”.
“If an honorable agreement is concluded – said Tsipras, at the end of a meeting with the Austrian chancellor, Werner Faymann – it will be up to me and my collaborators to bear the costs of its implementation. If, on the other hand, this is not the case, we will always be the ones to say a big no to a policy that is catastrophic for Greece".
GREXIT, AN UNCONTROLLABLE CRISIS. WAITING FOR THE YELLEN
In its annual report on monetary policy, the Central Bank of Greece warned of the consequences of a Greek exit from the Euro. Greece's agreement with its creditors "is of the utmost importance" and in case of failure of the negotiations "there will be an uncontrollable crisis" with the exit from the euro and "most likely" from the European Union. A “controllable debt crisis, such as the one we are managing with the help of our partners – writes the central bank of Athens – would snowball into an uncontrollable crisis with great risks for the banking system and financial stability. The Btp-bund spread still closes above 150 basis points and the ten-year Btp yield is 2,31%.
Wall Street opened higher but remains cautious with the three main indices hovering close to parity.b The market is waiting for the FOMC, which concludes its two-day meeting on monetary policy today and which will announce its rate decision this evening at 20pm of interest. Expectations are for maintaining the current level of the cost of money. Also on the agenda is Janet Yellen's press conference from which the market is expecting clues on the next moves. The market's reasoning is that mixed economic data and the deadlock in Greece have made the prospect of an interest rate hike more difficult. According to Bloomberg data, 47% of tarders believe an increase is likely in September, but that percentage is down from 53% a week ago.
On the macroeconomic front, weekly US mortgage applications fell 5,5% in the week ending June 12, with refinancing applications falling 6,9% and new loan applications falling 4,2%. Crude inventories fell by 2,676 million barrels, beating analysts' expectations. Wti oil drops 0,58%. The euro-dollar exchange rate is stable at 1,1243.
BOOM FOR THE INWIT IPO. MPS LOOKS AT THE AFTER PERFUME
In Piazza Affari the spotlights turned on Telecom Italia which in the session rose to over 3% in the wake of speculation on the French Vivendi which in a few days will acquire 8,3% of Telecom but would aim for 10-15% . In the meantime, the Telco spin-off deed was stipulated today and will become effective starting from the registration of the beneficiary companies in the Company Register. However, the stock lost share in the afternoon and closed up 0,45%.
Meanwhile success for Inwit, the subsidiary of the Telecom Italia towers, which closed with a boom in requests for the Inwit IPO. The offer was covered approximately seven times at 3,65 euros per share. Among the best stocks of the Ftse Mib we find MPs which jumps by 4,76%. According to Il Messaggero, Pietro Modiano is in pole position for the presidency of B.Mps in place of Alessandro Profumo which could occur in advance, in July and not in August.
For the other banks, the session was weak overall with Banco Popolare rising by 0,49%, while Unicredit dropped by 1,73%, Bpm by 0,66%. Ubi Banca 0,5%, after a morning on the shields in the aftermath of the go-ahead from the supervisory board to the statute of the future Spa.
A2A also performed well +1,95%. As reported by Il Sole 24 Ore, A2A has signed a letter of intent, aimed at an industrial integration, with Linea Group, a multi-utility whose main shareholders are the Municipalities of Cremona, Lodi, Pavia and Crema.
Among the minor utilities, Iren is also in turmoil +3,83%, after a leap of more than 5%, following the industrial plan which envisages a doubling compared to 2014 levels. At the bottom of the Ftse Mib is Stm -2,64 %, Azimut -2,63%, Finmeccanica -2,06%, Unipolsai -1,91% and Saipem -1,82%.
