European markets hit record highs for the second consecutive session, driven by the decline in new cases of the coronavirus which is encouraging the purchase of securities in sectors most linked to the Chinese market, from autos to raw materials. For S&P the coronavirus will have a negative impact on the growth of the world economy by 0,3% this year, by 0,7% for China alone with growth of the world's second largest economy slowing to 5% this year.
The positive trend also affects Business Square +0,7% over 24.860 points. They also go up Paris +0,43% and Madrid +0,5%. Best of all Frankfurt +0,8% which updates the historical record. London + 0,4%.
The outcome of the 12-month Bot auction was positive. The Treasury assigned the 6 billion maturing at -0,31%, a new low since May 2018, against -0,242 last month. The fall in yields on long maturities continues after the success of 15-year BTPs. The 0,92-year trades at 1,25%. Unicredit took advantage of the good disposition of the market to place Additional Tier bonds for 9 billion euro against a demand that exceeded XNUMX billion.
Germany placed the 0,35-year Bund at -0,38% from -1%. Greece's XNUMX-year bond yield fell below XNUMX% for the first time. Short-term bonds from Portugal are also in negative ground.
The dollar confirmed its rise against the other currencies with the euro/dollar cross at 1,091 (+0,04%) pending the intervention in the afternoon by the president of the Fed, Jerome Powell, in the US Senate.
The euphoria of the markets contrasts more and more with the slowdown signals coming from the real economy even before the effects of the Covid-19 epidemic. Industrial production in the area fell by 2,1% in December, worse than expected.
Il Petroleum Brent is trading at $55 a barrel, up 1,9%. According to rumors, Russia is willing to discuss additional production cuts with OPEC. The API reported that US weekly inventories increased by 6 million barrels. The government data from the EIA is expected this afternoon, estimates are for an increase of 3 million. Eni +0,9%, Saipem +1,6%.
In Piazza Affari, the index of Italian banks +1,6% broke through the psychological threshold of 10.000 points for the first time since September 2018 and brings the gain from the beginning of 2020 to +7%.
The Eurostoxx Banks index has also risen since the beginning of the year +5% driven by Deutsche Bank +32% in 2020. But this morning it loses momentum ABN Amro -4,6% after the accounts.
FinecoBank +0,1%. MainFirst strengthened the Buy by bringing the target price from 12,50 to 13,0 euros. Ps +3,4%. Positive Intesa Sanpaolo +1,5% and UniCredit + 1%. Where's Banca +4,4% after publishing results above expectations. Among the smaller banks Bank Ifis +2,7%; increased the dividend to 1,10 euro.
Bank System +3,1%, has acquired the pledged credit branch of Intesa Sanpaolo, ProntoPegno, a company of the Banca Sistema group, has signed an agreement with the counterparty and the trade union organizations which regulates the transfer of workers.
It bounces Cnh Industrial +3,6% ahead of FCA +2%. Telecom Italy
+1,3%. The Brazilian subsidiary TIM Participações recorded a quarterly profit higher than expected thanks to an increase in average customer spending.
Luxury in the spotlight. In Paris it goes up Kering +1,9%: net profit down in 2019, penalized by the fine of over 1 billion paid to the Italian tax authorities for omitted declaration of Gucci revenues. The French group, which controls brands such as Bottega Veneta and Yves Saint Laurent, closed the year with a profit of 2,31 billion euros, -37%, but in line with expectations. Good revenues. In the fourth quarter, marked by the protests in Hong Kong, they increased, on a comparable basis, by 11% to 4,36 billion euros, and in 2019 they rose to 15,88 billion euros (+13%). There are no ongoing negotiations with Moncler, unchanged. Ferragamo + 1,6%.
