It rains, rains and rains again on the financial markets. In Milan, the FtseMib index fell by 2,349% to 15.049. The German Stock Exchange loses 1,3%, London -0,6%, Paris -1,3%.
There are several reasons for the decline:
1) Strong concern about Mario Monti's chances of success, in charge of forming the new government. Tonight, in the event of a positive outcome, the president in charge will lift the reserve, presenting the list of ministers.
2) The bad intonation of the markets: European bankers liquidate their portfolios in Italian securities but not only. Bond yields of all European countries rose, except for the German Bunds. The yield of the ten-year BTP is at 6,87%, up 20 basis points compared to yesterday evening's close. The spread with the Bund (1,75% yield) is 515 basis points. The France-Germany spread rose to a new all-time high of 182 points. Spain placed 2,6 billion 12-month government bonds at 5,02%, up from 3,60% in the previous auction.
3) The negative data of the Zew index, which measures investor confidence in Germany, contributes to depressing the climate. In November, the index fell to -55,2 from -48,3 in October. Analysts forecast was for a Zew at -52.
Last but not least, the negative results of Unicredit and Finmeccanica weigh. Unicredit falls 6% after yesterday's presentation of quarterly results which show a loss of 10,6 billion euros.
Finmeccanica does worse: -13% under 4 euros. The company announced a third quarter loss of 790 million euros, from a profit of 112 million in the same period of 2010. The decline of Unicredit affects the entire banking sector: Intesa -1,9%, MontePaschi -2,9 %, Banca Pop.Milano -4,2%, Ubi -1,1%, Banco Popolare -2,6%.
But there is no respite for the rest of the list either. Among industrialists, Fiat fell by 1,3%, Fiat Industrial by 1,2%. Pirelli scores -1,9%. StM drops by 2,3%. Ansaldo, controlled by Finmeccanica, is moving in the opposite direction, gaining 1%. Both Enel and Telecom Italia lost more than 2% -2,1%.
Eni falls by 1,5%-1,7%, Tenaris falls by 2,8%. Strong sales on Lottomatica -4,9%, and Mediaset which drops by 2,9%, Tod's -2%. Campari recovers +0,4%, after yesterday's 7% drop. But not Prelios -15%. Buongiorno -9% also fell sharply.
Unchanged Zucchi who can afford to block the decline thanks to the guarantee of Buffon, shareholder of the shutter. "Of course, I did everything as I announced." This was stated by Gianluigi Buffon himself, regarding Zucchi's 30 million capital increase, an operation for which the goalkeeper and captain of the national team has committed himself for 2,92 million. Buffon, who was interviewed on the sidelines of a ceremony at the Quirinale, currently holds 11,5% of the company. The increase, which started on November 7, ends on the 25th.
