The markets, nightmare of sovereigns, have already issued their sentence: Italy's exit from the euro, more than possible, is probable. This explains the spiraling of both equity securities and fixed income while the story of the Cottarelli government is consumed, even before its presentation in Parliament. They slip into the void the words of Ignazio Visco in the meeting of the Bank of Italy: "The destiny of Italy is that of Europe", whose development "determines ours and at the same time depends on it".
La Milan Stock Exchange signals at 13:49 a drop of 3% around 21.260 points. The drop in Madrid was also heavy - 2,4% three days after the possible lack of confidence in the government. Down, but by just over a percentage point, the other lists of the Old Continent. The crisis has also affected the common currency: the euro slipped to 1,153, its lowest level since the end of 2017.
He's back, as expected, the yield on six-month Bots at auction this morning is above zero. For the first time in three years, the Treasury issued 5,5 billion 6-month BoTs with a yield of 1,213%, an increase of 163 basis points compared to the previous month's auction. The last time in which the six-monthly BoT recorded a positive return at auction dates back to September 2015. Demand was also weak, which stood at a total of 6,54 billion euro for a supply-demand ratio of 1,19. 2010, never this low since April XNUMX.
Yield of Btp rose to 3,10% over the ten-year period, from 2,67% yesterday. Spread with the Bund around 300 basis points (+70). Shorter-term bonds, such as the two-year BTP, whose yield, having reached 1,75%, is now at 1,60% (+70 basis points compared to yesterday), also fell.
The Italy/Spain spread reaches 150 basis points, a level reached only in 2012.
Finally, the credit default swap on Italian debt at five years, it jumped to 221 basis points from 174, hitting the highest since October 2013.
Brent oil tries to rebound, rising by 0,3% to 75,5 dollars. Eni -0,59%. Saipem Salt +0,54%.
The other blue chip up on the 40 stocks that make up the FtseMib index is Stm +0,4%.
New descent into the abyss for financials: the bank index loses more than 5%.
Unicredit loses -5%. Intesa Sanpaolo 6%. Among the former popular Bper Banca -6%, Ubi Banca -7%. In asset management, Anima -6%, Poste Italiane -5%.
Insurance is also bad: Generals -3,5%. UnipolSai -2%. Unipol bought 0,47%, it is now 76,29%.
According to the analysis conducted by Mediobanca Securities, a 100 basis point spread increase in two weeks translates into a 100 basis point increase in the cost of equity for companies exposed to the domestic economy. For analysts this translates into an average rating cut of 8%.
Credit Suissand notes instead listed on the Milan stock exchange that they recorded quarterly growth, albeit with a stronger euro than today, and that the Ftse Mib has very discounted valuations with a dividend yield higher than 3,7% "fully sustainable".
Meanwhile, however, industrialists and utilities continue in the red. Leonardo loses 4%. Fiat-Chrysler -2%. Telecom Italy -2,7%.
Enel -1,3%. The Brazilian Eletropaulo says that the June 4 auction was suspended by the court of appeal, according to a filing of the Brazilian stock exchange, hit this day by a wave of sales coinciding with the tug of war on petrol subsidies for transporters.
Among the utilities. Snam [SRG.MI] -2%. Italgas [IG.MI] -1,3%. Terna [TRN.MI] -1%. Goldman Sachs cuts everyone's target price.
