And go. The stock market rally continues, or rather accelerates fueled by the hope that the peak of the epidemic is now behind us. The price lists have reached their maximums for a month. Piazza Affari has engaged the turbo since the opening: the index marks an increase by 4,4%, bouncing over 17.700. Frankfurt gains 3,8%, Paris is close to 3. In London, while Boris Johnson fights the epidemic snubbed by him until a few days ago, the City is up 2,8%. Even Wall Street futures anticipate a 2% up start, after the brilliant +7% achieved yesterday by the S&P500.
The finance ministers of the euro area meet today by videoconference to agree on a common response to the COVID-19 outbreak and the economic fallout. Prime Minister Giuseppe Conte reiterated his no to the Mes hypothesis. A possible Italian "yes" could only come if, in addition to the Mes and the Bei, the partners also accept forms of common debt such as the Recovery Fund proposed in recent days by France. While awaiting the comparison, which is anything but simple, the Btp/Bund spread drops to 188 basis points. The yield on the 0,34-year German Bund rises to -0,44% from -XNUMX% yesterday.
Yesterday evening the Treasury announced that in Thursday's medium-long auction it will make available to investors up to 9,5 billion euros in 3, 7 and 15-year BTPs and 24-year bonds with a residual life of 2,5 years. Gold, which yesterday recorded one of the brightest sessions of the year with +XNUMX%, is now slightly retreating. Brent oil is up 3% to $34 a barrel, after yesterday's -3% closing. There are more and more signs of collaboration between the large crude oil producers, in view of the teleconference meetings in the coming days. Eni advances by 2,9%. Bernstein raises judgment to Outperform. Saipem +3,7%.
In Piazza Affari, Diasorin takes off +6%, which he completed at the San Matteo hospital in Pavia the studies necessary for the launch of a new serological test to detect the presence of antibodies in patients infected with coronavirus. The company expects to obtain CE Mark and Emergency Use Authorization from the US Food and Drug Administration by the end of April.
All blue chips are in positive ground. Leonardo stands out with a +7,5% even if the French Thales, active in the defense sector, withdrew the 2020 targets, without supplying new ones. And the dividend will not be paid. THEFiat Chrysler also rose sharply +8,4%. North American manufacturing plants are expected to get back on track starting May 4, two weeks later than originally planned. CNH Industrial +4,5%, has decided to cancel the payment of the dividend. Pirelli +2% aligns with the recovery of the European automotive sector.
Banks are still in evidence. The measures decided on Monday evening by the government envisage guarantees from the state for a total of approximately 200 billion granted through SACE (CDP Group), in favor of banks that provide loans to companies in any form. The guarantee will cover between 70% and 90% of the financed amount depending on the size of the company: 90% for companies with a turnover of less than 1,5 billion and fewer than 5.000 employees; 80% for companies with more than 5.000 employees and a turnover between 1,5 and 5 billion; 70% for companies with a turnover greater than 5 billion. Among the conditions for obtaining the guarantee, there is the impossibility of distributing dividends for the following twelve months.
Citigroup cuts rating to Neutral. Intesa +4,66% and Unicredit +6,7% take off. Sale Banco Bpm +2,3%. Popolare Sondrio also runs today with a leap of 9% after the update of the Consob shareholdings according to which Unipol held a 1,9% stake on 18 March and this could open M&A scenarios on the stock.
Asset management is also doing well: Banca Mediolanum up +3,9%, Finecobank up 2,5%. Yesterday the company joined the ECB's recommendation with the decision to suspend the distribution of the coupon.
Salvatore Ferragamo +2,5%, has released some advances on the first three months of 2019. As at 31 March 2020, the Florentine fashion house recorded total revenues of 220 million, down by 30,6% at current exchange rates (-31,4% at constant exchange rates). The board revoked the 2019 earnings dividend. The company canceled the proposed dividend presented on March 10.
Safilo -2%, has decided to withdraw its outlook for 2020. In Paris, both Lvmh and Kering have decided not to take advantage of the tax benefits and aid launched by the government to counter the effects of the pandemic. The two luxury groups they took a step back compared to initial requests after Chanel and Hermès had chosen to fend for themselves by drawing on the robust reserves.
