Gloomy day for the European stock exchanges which, in full harmony with the Halloween party, close the month with a minus sign. Milan is the continent's black jersey with the Ftse Mib at -1,15%; not much better in Paris -0,86%, followed by London -0,6% and Frankfurt -0,29%.
Wall Street opens without great momentum, but the indices are moving in moderately positive territory, despite the decline in oil, linked to pessimism about an agreement in Vienna and despite the reopening of the"emailgate" for the most reassuring presidential candidate, Hillary Clinton.
Financial and oil companies bring Piazza Affari to the bottom. Mps -7,39%, it's the worst title of the day, but not even the popular soon-to-be brides do much good, Bpm (-3,04%) and Banco Popolare (-2,96%). Sales hit heavily Finecobank -3,62%, Mediobanca -4,78%, Unicredit -3,83%.
Among the oil companies: Eni -2,22%, Tenaris -2,28% and Saipem -2,85%. In the sad landscape the star of Stmicroelectronics shines 3,33%. Fiat also did well +1,14%, Brembo +0,72%.
Two news to report regarding MPS: the bank has appointed the proxy advisor company Morrow Sodali to collect the voting proxies among the shareholders for the meeting which on November 24th will have to approve the increase up to 5 billion euro; meanwhile, according to Reuters, Corrado Passera asks for an answer during the week to have access to the accounts of the Sienese bank for which he said he had found investors ready to invest 2 billion. Moving on to another topic: in a recommendation published today, Consob asks everyone for more warnings for investors on financial instruments.
Meanwhile, the tension between Europe and Italy rises due to the budget law: the answers provided by Minister Padoan have not yet convinced Brussels, but a solution is being sought, after the new and serious earthquakes. To finance the anti-seismic plan, the Commission, according to Radiocor, suggests the EU Fund for strategic investments and public contributions to projects. Expenses for interventions directly related to the emergency will be discounted. This path would create the space to guarantee a minimum of structural adjustment of the budget in 2017 considered necessary for the green light to the budget. The solidarity of Berlin also arrives on the earthquake, but also a dry "nein" to a violation of the rules on the debt.
The climate is not exactly favourable, even in the light of the inflation data, weighs on government bonds and there are sales flows on Italian futures as on securities, in a session that traders expected from limited volumes.
Lo Italy-Spain spread on the 40-year stretch it went into the area of 2014 basis points, the highest since October 12. At 2026 noon, the reference 1,609-year BTP for June 1,224 yielded 39%, while the Spanish equivalent recorded a rate of XNUMX%, for a differential of XNUMX basis points.
It's getting larger on the highs since the Brexit referendum also the spread between Btp-Bund. The differential stood at 152 basis points, the highest levels since the end of June 2016, while the yield, in four sessions, jumped from 1,38%, recorded at the end of last Tuesday, to 1,67%, a value that cannot be had been seeing since mid-February.
From the Western front: Wall Street starts off with little movement and is about to close the worst month since last January. Investors are grappling with M&A deals, macroeconomic data, corporate accounts and political uncertainty related to next Tuesday's presidential election. Hillary Clinton's odds of writing history today drop from 81% to 75% and, according to Citi analysts, even if he wins the elections, Donald Trump may not accept the result and the ongoing investigations may continue to cast shadows on the former secretary of state, thus the specter of a future impeachment could emerge "not negligible".
However, the US economy is running at a good pace and the banking sector is even exuberant. In the third quarter, the so-called Big Six (Goldman Sachs, Morgan Stanley, Jp Morgan, Wells Fargo, Citi and Bank of America) combined profits of 24,3 billion dollars, slightly less than what Italy needs to bring his own budget package.
Declining oil: the price of the WTI contract is in the red by 2,22% at 47,63 dollars a barrel, at its lowest level in October. Dollar up against other major currencies, but below recent highs. Euro down 0,16%, against the greenback, trading at 1,096.
