BANKS IN RED, WEIGH UKRAINE AND GAZA. BUND AT THE MINIMUM, THE UTILITIES ARE DEFENDING
The stock markets are down under the pressure of the international crises in progress. The Moscow Stock Exchange falls -1,5%, on the sixth consecutive day of decline. The Dubai market plummets -6% on Sunday, in the wake of the crisis of a real estate company but also due to tensions in the Middle East. In Milan, the Ftse Mib index lost 0,89% to 20.553. The other European lists are in negative ground: Paris -0,24%, Frankfurt -0,48%%, Madrid -0,21%. London -0,20%. In Zurich, Julius Baer greets the announcement of the purchase of the private banking businesses of Bank Leumi in Luxembourg and Switzerland, for an amount of up to 70 million Swiss francs, with a sharp rise. The stock rises by 6,1%.
The spread between the BTP and the Bund is 163 basis points. The 2,79-year yield is 1,1%. Other not very comforting news arrives from the Italian economic front: in May, Italian industry recorded a drop in both turnover (-2,1%) and orders (-2,5%). Year-on-year orders fell by 6,2% (raw data) versus +0,1% the previous month, while calendar-adjusted revenues increased by 2,2% from +XNUMX% of April.
The banks go down in Piazza Affari. Banca Popolare dell'Emilia Romagna loses 2,7%. The bank communicated that the capital increase closed with subscriptions equal to 99,77% of the total offered, for a counter value of 748 million euro. Monte Paschi also fell -1,7% despite the decision taken by Santander to raise the recommendation to Hold from Underweight.
Intesa Sanpaolo -1,7%, Unicredit -1,1%. Hungarian Economy Minister Mihaly Varga said that the expected conversion of foreign currency denominated loans into Hungarian forints will probably take place only in 2015. The two Italian banks are among the most exposed to Budapest. Ubi Banca -2%, Mediobanca -1%. Great expectations for Fincantieri's accounts -0,07% which will be published during the day. Utilities are on positive ground: A2A +1,61%, Snam +0,65%. The majority of industrial companies are down, Fiat -1,6%, Pirelli -0,8%, Prysmian -1%, Cnh Industrial -1,4%. Stocks most associated with air traffic were still down: World Duty Free -1,3% and Autogrill -1%. Telecom Italia also fell -1,3%.
Oppose the luxury companies. Yoox +0,3%, Moncler -1,3%, Luxottica -0,7%. In evidence Maire Tecnimont +4,4%. The plant engineering company has signed an agreement with Pakistan's Fatima and Midwest Fertilizer aimed at building a new mega fertilizer complex in the United States, in a project worth an estimated $1,6 billion.
