European markets are back under pressure after fluctuating around parity. Piazza Affari, is down by 0,3%. Paris-0,4% Frankfurt -0,2%. Madrid -0,55%. London also slips in the red -0,23%. Economic growth and inflation in the euro area show "good signs of stability" after the slowdown, according to ECB board member Yves Mersch. The markets await the signing of peace on tariffs, scheduled for Wednesday, and the first quarterly results of 2020. JP Morgan's accounts will be announced before the opening of Wall Street, followed by the quarterly reports of Citigroup, JP Morgan, Wells Fargo and Delta Air Lines during the day.
Supported application for i Btp at auction. The Treasury has placed the entire amount of 6,75 billion euro at declining rates in the shorter maturities, while the "long" ones are increasing. In detail The 7-year, now in its third reopening, was placed at a yield of 0,94% (against 0,91%) for 2,5 billion on steeply rising requests. The 3-year term drops to 0,18% from the previous 0,22%. Finally, the 20-year BTP recorded a rate of 2,14%, the highest since mid-June, up on the previous 1,78% (historic low) in mid-October. The spread drops to 155 points.
In the middle of the day the yield of the Bund 0,17-year German bond reaches -0,75%, the highest level since last May. At the end of August it was -30%. The movement finds justification in the expectation that an initial agreement on tariffs between China and the United States could also improve the growth prospects of the Eurozone. Citigroup expects the yield on the 17-year German Bund to rise by 1,3 basis points if the December euro area inflation figure, released on Friday 7, is higher than the XNUMX% expected. In that case, the Bund yield would "turn positive" for the first time since May XNUMX, wrote Jamie Searle, a strategist at Citigroup.
Oil prices are recovering after falling to $64 a barrel today as fears about a possible supply disruption due to tensions in the Middle East eased. Brent futures gained 20 cents, or 0,31%, to $64,40 a barrel. Weak Eni -0,1%.
Renault and Nissan Motor denied reports that their alliance was at risk of unraveling, prompting shares in the French automaker to recoup some of yesterday's session losses.
In Piazza Affari it advances Ferrari +0,8%. Fiat Chrysler +0,4%.Pirelli down -2,5%.
Tensions are growing Atlantia -0,3%. Some foreign shareholders have sent a letter to the European Commission denouncing the behavior of the Italian government. The company has appointed the new managing director, he is Carlo Bertazzo, former director of the holding and general manager of Edizione, the financial company of the Benetton family.
The cost to hedge against the risk of a possible Atlantia default rose after S&P downgraded the infrastructure group's debt to 'junk' on Monday, which cited growing risks the company could lose its motorway concession. Atlantia's CDS (Credit Default Swaps) rose by 245 basis points from 232 basis points at yesterday's close. This means that around 245.000 euros are needed to insure 10 million of Atlantia's debt against the risk of a five-year default.
On positive ground Leonardo +1% which has announced that it has won a 176 million dollar tender in the United States, an order from the Navy for the supply of 32 helicopters for pilot training.
In the credit advances Bper +0,3%: the bank is preparing to sell up to 1,2 billion euros of non-performing loans with the assistance of
state guarantee. Ubi Banca +1,5%. Azimuth +1%. General -0,5% is preparing to sell a billion life insurance policies in France that provide returns that are now off the market. Nexi's race continues +1,46% to 12,48 euros.
