In Europe perhaps "the worst is over", but overseas "something is not working", admits the virologist Anthony Fauci, commenting the outbreak of the pandemic in the United States. Wall Street takes note of this and moves in deep red with the banks, inflicting a decisive push on the European stock exchanges in the afternoon, which close in contrast. Milan -0,57%, down to 19.124 points; Frankfurt -0,87%; Paris -0,18%; Madrid -1,24%. London saves +0,27%, supported by a declining pound (the euro rises to 0,909 against the British currency).
Even today's session in Europe was therefore a rather volatile session, illuminated in the late morning by the words of Christine Lagarde: "We have probably passed the lowest point - ventured the president of the ECB - but I say this with a certain apprehension, because a second serious wave is possible”. Central banks will mount a massive response, but politics must also play its part in this historical phase. A breath of optimism, which had led Piazza Affari to gain more than one percentage point, a positivity swept away however by the chill of the New York Stock Exchange, where the sales are mainly affecting the banks.
The flight from the stocks of American financial giants was triggered by Fed's decision to block share buyback plans, while prohibiting the increase in dividends in the third quarter, after stress tests showed that in some scenarios linked to the evolution of the pandemic, some banks could touch minimum capital levels. The banking sector of the S&P 500 is down 3,9%.
Also on the Ftse Mib the banks close a negative session: Banco Bpm -3,75%; Mediobanca -4,02%; Unicredit -1,79%; Understanding -1,47%, although yesterday evening Consob approved the ops offer document on Ubi (-0,87%). The membership period will start on July 6th and will end on July 28, unless extended. The offer document reads that Intesa "provides that, in the event of a merger, the proposed integration of the Ubi group could generate synergies, for the year 2023, in an amount equal to 662 million pre-tax", while "when fully operational, starting from from 2024 (included), in an amount equal to 700 million pre-tax per year".
In the rest of the list, oil stocks are negative, especially Saipem, -4,57% and Tenaris -2,58%. Male Telecom -3,76%, penalized already yesterday by the 'sell' opinion of Goldman Sachs. “Fears of a second wave are driving investors out of cyclicals into utilities,” notes one trader. Purchases are substantial on Snam +2,13%; Terna +1,17%; Hera +0,85%. Atlantia did well, +1,79%, with the market inclined to believe in a solution on concessions. Cnh +1,76% and Campari +1,76% recover. Interpump is still doing well +1,69%. Off the main list has sailed in relatively calm Catholic waters (-1,32%), after yesterday's leap (+38%), following the announcement of an agreement with Generali (-0,15%) for a strategic partnership.
The largest Italian insurance group will enter Cattolica's capital with a 24,4% stake, through a reserved capital increase of 300 million with an issue price of 5,55 euros per share. Bonds moved little. The spread between Italian and German ten-year bonds closed at 181 basis points (+0,26%); the BTP rate is stable at 1,29. The euro-dollar is flat, around 1,12. Risk aversion boosts gold, which moves in progress above 1778 dollars an ounce. Oil starts to fall again: Brent -0,85%, 40,70 dollars a barrel.
