Le European stock exchanges they recover ground and close another brilliant session, after yesterday's improvement following the solution ubs (+12,38%) for Credit Suisse (+6,78%). The opening is also tuned to Wall Street, where First Republic Bank rebounds (+41,4%), while expectations are growing for what the Fed will decide tomorrow, at the end of its monetary policy meeting. The market is betting on a 25-basis hike, but a slice of investors believe Jerome Powell will be taking a break for reflection. Before the banking crisis, a new intervention of 50 basis points was estimated.
Despite its undoubted global weight, the second day of Chinese leader XI Jinping's visit to Russia also remained in the background.
Brilliant Europe
Square Business it confirms itself as queen when purchases reward credit securities and so today, once again, the Ftse Mib is leading the continental rises with a gain of 2,53%, recovering 26.554 basis points. Oil stocks are also appreciating with the progress of crude oil.
In the rest of Europe Madrid follows Milan and rises by 2,47%, followed by London + 1,81% Frankfurt + 1,77% Paris + 1,42% Zurich + 1,38% Amsterdam + 0,98%.
Enria reiterates: the hierarchy of creditors is important
The climate has improved a lot on the markets, because the safety net put up by European and American authorities around the banks seems to be working. However, the knot has not yet been resolved on both sides of the Atlantic and volatility could return in the next few sessions. For example, the decision to reset the data remains burning subordinated bonds by Credit Suisse, which has already cost bond giant Pimco around $340 million.
It is no coincidence that the chairman of the Supervisory Board of the ECB returned to the subject today, Andrea Enrico, to mark the differences in the EU and reaffirm the importance of hierarchy on who pays the bill in the event of a crisis.
"The framework of creditors who must be exposed to losses in the event of a bank crisis is important and we in the EU - he underlined - believe that an appropriate hierarchy must be followed so that ideally the resolution must be orchestrated respecting as much as possible this hierarchy which sees first distribute the losses to the shareholders first”. This did not happen in the case of the Swiss bank bailout, where shareholders were spared while bondholders who bought subordinated bonds – Tier 1 Capital Notes – lost their investment.
On the US front, the market appreciates the idea that the administration is studying the possibility of temporarily insuring all bank deposits and the positive attitude of Janet Yellen: “The situation is stabilising. And the American banking system remains solid,” said the US Treasury secretary, in front of an audience of bankers.
As for First Republic, which has lost nearly 90% of its stock value since the beginning of the month, today's rebound was due in large part to the fact that Jamie Dimon, the chief executive of JPMorgan, is in discussions with other bankers about increasing aid, after already guaranteeing $30 billion in liquidity. Among the hypotheses examined is that of converting all or part of the deposits into an infusion of capital.
Dollar down, oil rises
The general climate and the expectation of a more dovish Fed weighs on dollar. The greenback index is also at a loss today and theeuro trades higher around 1,077.
Instead, the Petroleum, with Brent and WTI currently up 1%.
On the other hand, the newfound propensity for risk damages thegold, which lost about 1,5% and traded below 1950 dollars an ounce.
Raise your head the gas, around 41,5 euros per MWh.
Piazza Affari in recovery with Saipem and Unicredit
Oil companies and banks, banks and oil companies. The front page of the Ftse Mib is inhabited today mainly by titles from these two sectors.
In the end, the podium goes to Saipem, which appreciates by 7,57%. Purchases have also rewarded Tenaris + 3,36% Eni +2,11% and among minors Saras + 5,4%.
As for banks and the surrounding area, Unicredit opens the dance +6,96%, followed by Finecobank + 5,41% Bper + 4,89% Understanding + 3,52% nexi + 4,09% Banca Mediolanum + 3,53% Mediobanca + 3,51% Post + 3,4%.
It stands out among the industrialists Cnh +3,6%, but it is also tonic Ferrari +1,23%, despite the hacker attack. The Maranello house takes advantage of the results of its rival Lamborghini, which announced record 2022 accounts with revenues for the first time over 2 billion.
Declining blue chips are few and red is pale. It starts from Erg -0,73%, they follow Terna -0,65% Amplifon -0,54% Italgas -0,09% Campari -0,05%.
Among the utilities, which are currently weak, Hera appreciates by 0,81%, after the accounts and the proposal for a dividend of 12,5 euro cents, up 0,5 cents on the last dividend paid and in line with what announced in the plan to 2026: this increase "will benefit the entire dividend policy over the period of the plan, to reach 15 cents per share in 2026".
Spreads down
The secondary for the Italian card closes in green. The spread between ten-year BTPs and Bunds with the same duration, it fell by 175 basis points (-3,16%) with yields on the rise, respectively to +3,99% and +2,24%.
