Piazza Affari recovers 22.165 points and closes up 1,88%, in line with the generalized optimism that dominates the markets today. The stock markets are betting on the success of the ongoing negotiations between the US and China on tariffs and on an agreement in the Cesarini area that avoids a hard Brexit. Wall Street starts in the green with Apple (+2,1%) reaching record levels and financial stocks in great shape, offering an excellent bank in the afternoon to a Europe already on the run. “Good things are happening in trade negotiations with China – tweeted Donald Trump –. Feelings friendlier than in the recent past, more like the old days. Today I have a meeting with the Deputy Prime Minister. Everyone would like to see something significant happen!”
In the Old Continent Frankfurt, +2,84%, is the best place with purchases that reward banks and cars, while the Sap technology group is in orbit, +9,6%. The bull lives in Paris +1,7%, Madrid +1,8%; Zurich +1,34%. London is slightly behind, +0,8%, due to the sterling rally driven by confidence in an orderly Brexit.
The weekend promises to be fiery and the light at the end of the tunnel would be kept on by the possible solution on the thorny junction of the border between Northern Ireland and the Republic of Ireland identified by the British prime minister and the Irish president and by the fact that the chief negotiator Michel Barnier obtained the green light from the 27 EU member states to enter a phase of "intense negotiations". Elements that project the British currency to a three-month high against the dollar and a five-month high against the euro. At the moment the decline of the single currency against the pound is 5%, cross 1,57. The outlook favors the euro against the dollar and the exchange rate is around 0,870.
Le tensions in the Middle East meanwhile, far from holding back investors, they push up oil prices. Brent futures climbed above $60 a barrel following a missile attack on an Iranian tanker off the coast of Saudi Arabia. In the shadows is gold, which is trading down at 1484,55 dollars an ounce.
Piazza Affari participates in the generalized party, above all with Stm which rises by 7,11%. They fill up with purchases Cnh +5,73%, Leonardo +5,39%; Juventus +4,77%. The banks follow closely: Banco Bpm +3,86%; Bfor +3,65%; Unicredit +3,41%; Ubi +3,59%
They complete the top ten of the main Tenaris list +3,48%; Buzzi +3,42%. Fiat did well +2,1%, also following the dismissal of Thierry Bolloré by Renault (+5,1% in Paris). An exit from the scene that could facilitate the resumption of a dialogue with the French automaker. Sales penalize Nexi -0,45%; Amplfon -0,28%; Terna -0,21%; Snam -0,13%; Diasorin -0,05%.
Among the mid caps, Mediaset rises by 2,24%, Despite the decision of the Spanish judge to suspend as a precautionary measure the resolutions of the Mediaset Espana assembly functional to the reorganization of the activities under a Dutch holding company, accepting the request of Vivendi, the second main shareholder of the Biscione. "Vivendi damages the shareholders and will not stop Mediaset's European expansion project," says the company, which is ready to immediately appeal the suspension.
The rally affects bonds, with the spread between Italian and German ten-year bonds that retreats to 137 basis points (-4,97%) and the yield of the BTP slightly down to +0,93%. On the other hand, the yield on the Bund rose to -0,44%, -0,44%.
Meanwhile, Mario Draghi takes off a few pebbles from his shoes as his mandate approaches and sends a message to the Germans: The governments of the euro area can help the European Central Bank to raise interest rates first if they loosen their purse strings to support the economy, he says. Draghi is probably referring to the criticisms leveled at the ECB's expansionary monetary policy by cash-rich countries like Germany, where the government is maintaining a budget surplus despite a stagnant economy.
Remaining on the subject of central banks, the Federal Reserve has announced that it will start buying about $60 billion a month of government bonds to ensure "large reserves" in the banking system, a program that will continue until at least the second quarter of 2020.
