By mid-morning, the pressure on the Milan Stock Exchange eased slightly, which almost eliminated the losses with a drop of 0,22% thanks to the results of the 12-month BOT auction: against an offer of 6,75 billion euro, there demand was over 10 billion (1,55 times supply). Allocated 6,75 billion with a weighted average yield of 3,67%, the highest since September 2008 (2,147% the yield of the previous auction).
The pressure on the price list had already subsided slightly before the result of the auction with the stock market dropping by around 1,7% in mid-morning after a dramatic start to the session: -4% after the first few minutes of trading, falling below 18 thousand points, reaching the levels of July 2009. The usual scenario opens: bank stocks down and numerous suspensions. Unicredit after being suspended downwards with a drop of about 4% has returned to trade and is now down about 0,87%. Both Piazza Cordusio and Intesa Sanpaolo have reached new lows. Suspension also for Bpm.
The wait for theapproval of the economic maneuver quickly, a week, with Economy Minister Giulio Tremonti who left Ecofin early to go to Palazzo Madama. The spread between the XNUMX-year BTP and the German bund which had widened up to 330 points then returned to the 328 area.
Meanwhile, Italy receives the support of the new IMF director Cristine Lagarde: “'Italy's problems are dictated by the markets. Some figures from Italy are excellent. The primary deficit is one of the best. The debt is particular in its characteristics because it is held within the country”.
