The Milan Stock Exchange is still traveling positively, gaining just over the percentage point (+1,10) in mid-morning. At the moment, however, Piazza Affari is the pink jersey among the main European price lists, followed by Paris (+1,01%), Frankfurt (+0,63%) and London (+0,43%).
Yesterday the Italian Treasury auction went beyond all wildest expectations: yields on annual BOTs collapsed to 5,9% to 2,7%, much better than the 3,5% at which securities with similar maturities were traded in the morning. The stock market rejoices. The spread finally drops to 475. Mario Draghi, in front of his colleagues in the ECB directorate, savors the first victory of his management: even if any enthusiasm is premature, ECB loans to banks are starting to flow into sovereign debt. Then, who knows, even in support of the economy, as he has not yet succeeded in either the Fed or the Bank of England.
La disappointment for the worse than expected US economic data (consumption and applications for unemployment benefits) only partially conditioned the celebrations of the Milan Stock Exchange, which closed up by 2% against theParis flat course and the 0,2% drop in London. After all, it is difficult to find a less than positive aspect in the morning of the revenge of the Spanish Bots and Bonos. For multiple reasons. First of all, all the 12 billion planned bonds were placed. In addition to 12-month BOTs, which at these prices can represent a tactical weapon to lighten the supply of long-term securities, the market has also absorbed securities at 6 months at 1,60%. The result of the auction also had a positive effect on ten-year BTPs: the yield fell by 38 basis points to 6,57% elor spreads with the German Bund it fell to 475 points. Meanwhile, in Madrid, Spain doubled the amount of Bonos on offer from 5 to 10 billion euros, taking advantage of the sharp fall in yields. The euro has clearly strengthened and reached 1,281 against the dollar in the evening, from 1,271 at the previous close.
for once, Europe's data is driving America upwards, able to compensate for the incoming disappointing notes of the stars and stripes economy. The data on consumption (net of car sales) is disappointing, down by 0,2%, against expectations of +0,3%. Meanwhile, applications for unemployment benefits rose to 399 thousand (from 372 thousand). But Wall Street, thanks to Europe, however closes a positive trend: Dow Jones + 0,17, Standard & Poor's 500 + 0,23% Nasdaq + 0,51%.
In the evening, with the Stock Exchange closed, it arrived the news of the agreement between Unipol and Premafin. The plan envisages: first a takeover bid on Premafin promoted by Unipol, a financial group, then a capital increase by Premafin itself, followed by the recapitalization of Fonsai. Finally an injection of fresh media in Unipol. Thus the second Italian insurance company takes shape with a 32% share in the non-life business, 10% in the life business. Thus the Ligresti leave the scene, despite the resistance of the irreducible Paolo, who again yesterday evening postponed the painful yes until this morning. Fondiaria-Sai yesterday it rose by 7,2%, Unipol fell by 4,3%, Premafin closed unchanged.
On the Stock Exchange Ia fall in the yields of Italian government bonds has turned into a massive hike for banks. Unicredit it jumped 13,5% on news that Citigroup raised its rating to a buy.
According to the Financial Times, both the Abu Dhabi Al Aabar fund, which owns 5% of the capital, and the Libyan shareholders who have a total of 7,2% will dilute significantly at the end of the operation. On the contrary, these days there have been massive purchases by US, British and Norwegian hedge funds. According to the operators, writes the newspaper, about a quarter of the rights will remain unopted while for the bank the unsubscribed quota will not exceed 5%.
The recovery of government bond quotations is real oxygen for the balance sheets of Italian banks, forced by the EBA to severe mark-to-market devaluations. Pop.Milan rose by 6,5%, MontePaschi + 8,8% Banco Popolare + 4% Understanding + 4% Mediobanca + 8% Where's Banca 6,2%.
Piazza Affari held up well even when in the afternoon the US data wiped out the gains of the other Stock Exchanges. Halfway through the session Wall Street recorded a drop of 0,2% for both the Dow Jones and the S&P, after the disappointing data on US consumption in December. Growth was only 0,1%, against expectations of +0,3%. The data on consumption is particularly disappointing net of auto sales, it fell by 0,2%, against expectations of +0,3%. Both indices had risen by 0,2% in November.
Also from US labor market cautious indications have come. Last week new requests for unemployment benefits they rose to 399 from 372 the previous week. Economists had expected 375. The Philadelphia Fed's business activity index has been revised downwards for the month of December to 6,8 points from 10,3 points previously.
To curb the London Stock Exchange (-0,2%) contributed to the collapse of Tesco, finished down 16%: the main English department store chain announced much lower than expected Christmas sales results.
Asset management stocks are up sharply in Milan: Mediolanum + 5,5% Azimuth +2,9%. Among industrial stocks, the star was Prysmian, up 4,3% thanks to the buy promotion of Bank of America-Merrill Lynch. Finmeccanica gained 1,4%, StM +1,4%. The auto sector was positive, with Fiat which rose by 2,8%, Fiat Industrial + 4,3% Pirelli + 1%. Telecom Italy advances 3,2%, Enel + 2,2%.
Among the few negative blue chips, Eni closed down -0,5%, has dropped sharply Atlantia -3,1% on fears of a pejorative revision of the rate adjustment mechanism. JP Morgan downgraded the recommendation to neutral from overweight.
