Galloping bags after the successful outcome ofauction of Spanish government bonds. THE'FtseMib index of Piazza Affari rises by 2,2%. Smaller increases for London +0,6%, Paris +1% and Frankfurt +1%. Madrid is up 1,5%.
Madrid placed 3 billion Bonosbetween 12-month and 18-month bonds, albeit at rising rates: the 12-month rate rose to 2,62% from 1,4% at the previous auction. That of the 18 months rose to 3,11% from 1,7%.
The improvement was immediately transmitted to the ten-year BTP: the yield falls to 5,45% (-10 basis points). The BTP-Bund spread tightens to 373 points. The Bono yield falls below the 6% barrier to 5,86% (-15 basis points). Good news also from Germany. L'Zew index on investor sentiment rose to 23,4 in April from 22,3 in March while economists' expectations remained at 20,0. The institute for research and analysis of economic trends expects a further improvement in the economic scenario in Germany. Now the market's attention is shifting overseas: data on new buildings and industrial production will be released in the afternoon. The Btp-Bund spread tightens to 373 points.
Milan, after a weak start, is the best in Europe. The Ftse Mib rises by 1,18% driven by the banking sector: in particular Banco Popolare (+ 3%), bpm (3,2%), Intesa San Paolo ed Unicredit (both +2,7%). MontePaschi e PopEmilia rise more than 4%. The credit sector is, moreover, well bought on a continental level as well. The sector index climbed 1,3% with Bank of Ireland gaining 4,6%, followed by Barclays (+3,6%) and SocGen (+3,3%). Sale Unipol +4,2%, after the definition of the exchange ratios for the merger with Fondiaria-Sai +0,8%. Falls, predictably, Premafin, down by 18%, however still above the price (0,1905 euro) agreed with Unipol. In steep descent Tenaris – 3% after the Argentine government's decision to nationalize Ypf, the oil company 51% controlled by the Spanish Repsol. Tenaris makes 18% of its production in Argentina. Eni gains 2%, Saipem +1%.
Bad morning also for Fiat -1,98% after the negative data on car sales in Europe in March, StM - 2,9% and Diasorin -1%. Instead, utilities and telecommunications are up: Enel +1,9%, Telecom Italia +2,5%, Atlantia +2,7%. Impregilo is up 3,2%.
