Still tension in the European price lists. This morning's positive start was quickly canceled out by a series of repeated declines, but then all lists returned to positive territory. Around 15:30, the Ftse Mib gained 2,2% in Milan, while London and Frankfurt advanced by 0,44% and 1,3% respectively. Even Paris, after several hours in red gold, gains (+0,32%).
PARIS SINKS UNDER THE WEIGHT OF THE BANKS BUT THEN RECOVERS
Tomorrow Moody's is expected to downgrade the three largest French banks: BNP Paribas, Crédit Agricole and Société Générale (the latter is the share that has lost the most among French banks in recent weeks, down 62% compared to January 7,5 last year ). Today, however, to accuse the greatest losses is Bnp Paribas, which lost 15% in the middle of the day, after the Wall Street Journal published rumors according to which this credit giant would have difficulty in obtaining liquidity in dollars. Subsequently, however, like the other bank stocks, Bnp Paribas also recovered (it yielded "only" 30% at 0,7). The Paris stock exchange is influenced by rumors of a possible Sarkozy-Merkel communiqué on banks. Maybe a joint rescue operation for troubled institutions.
BANKS HOLD DOWN IN MILAN, FIAT DOWN
The financial sector, which this morning in Milan managed to gain up to 4% at the start, then reduced its gains, to then quickly recover and support the Ftse Mib. Earnings in particular Unicredit (+6,12%), after the CEO Federico Ghizzoni, in an interview with the Financial Times, said that the market is ready to support a capital increase. In the last hour, then, energy stocks have resumed. As for Eni, the action was temporarily suspended. The group's number one Paolo Scaroni announced that he had secured the contracts prior to the conflict by signing an agreement with representatives of the National Oil Company. The shares of the Fiat galaxy also recovered (+0,67% for Fiat and +0,72% for Fiat Industrial). At the Frankfurt motor show, Sergio Marchionne confirmed the 2011 targets for Fiat and Chrysler but also predicted that 2011 and 2012 will be difficult years for the auto sector.
BTP: SPREAD WITH BUND GOES BEYOND 400 BPS AND THEN RETURNS BELOW THE THRESHOLD
The five-year BTPs, auctioned this morning, saw yields jump to record levels (5,6%, the highest since the introduction of the euro). The spread with the Bund of ten-year BTPs, which before the auction fluctuated just above 400 basis points, reached 406, before falling back. And return below the 400 threshold. Around 15:50 the spread was at 387 bp. This morning rumors spread about contacts between the Treasury and representatives of the Chinese CIC fund for the purchase of BTPs.
