Uncertainty favors gold, which moves around 1800 dollars an ounce.
“The crisis due to the coronavirus will leave Europe with a large public and corporate debt, but interest rates are also set to remain low for a long time, limiting the burden of this debt”. This was stated by the vice president of the European Central Bank, Luis de Guindos, underlining that "the outlook for interest rates will be even more moderate than pre-coronavirus and this will help".
Against this backdrop, the Italian government, held back by the confrontation on the Mes, is preparing new anti-recession measures. The executive will revise the 2020 deficit target to around 11,6% of GDP, from the current 10,4%, to finance a new expansionary package of around 20 billion.
Piazza Affari said goodbye to the month of June with a slightly down session: -0,37%, to 19.416 points. Almost flat Paris (-0,19%), worse Madrid (-0,64%). The drop in London was heavier (-0,90%) penalized by the performance of oil: Royal Dutch Shell lost 3,2% after announcing the devaluation of the value of its assets up to 22 billion dollars. The best price list was Frankfurt (+0,64%).
EUROPE FILES A GOLDEN QUARTER: NOKIA SUPERSTAR
At the halfway point of the year, the market, split in two by the pandemic, lends itself to a double reading: In Piazza Affari, the April-June balance is very positive: in this period the increase was 13,7%.
In the same period, the EuroStoxx 50 marked an increase of 15,4%. Among the major stock markets of the Old Continent, the best is that of Frankfurt (+23%); among the worst are Madrid (+6%) and London (+8%).
The leading sector was technology and the best blue chip was Nokia (+41%); followed by Siemens (+38%) and Asml (+33%).
BUT RED STILL DOMINATES SINCE JANUARY: -17%
The picture changes radically compared to January. The markets only partially compensated for the decline accumulated in the first quarter. The balance for the six months in Milan is a heavy -17%, which however compares with the equally heavy -13,5% recorded by the Eurostoxx 50 index.
Only nine out of 40 blue chips close the semester with a positive performance. The five best are Diasorin (+47%), Nexi (+26%), Recordati (+20%), FinecoBank (+13%) and Enel (+10%).
At the bottom, we find the stocks of the energy sector: Saipem -49%, Tenaris -42% and Eni -37%. Leonardo (-42%) and Unicredit (-35%) are also in deep red.
Positive outcome for the medium-long term auctions of the Treasury, which recorded yields at their lowest since February for securities maturing in July 2025 (-24 cents) and August 2030 (-22 cents).
Finally, the Treasury issued the seventh tranche of the CcTeu maturing on 15/12/2023. The amount assigned was 1,25 billion for a yield of 0,56% (+3 cents).
The 1,24-year bond also performed well, with the rate slipping to 1,31%, from 175% and the spread decreasing to 182 basis points from XNUMX at the start.
The offer of long titles is growing. Today Portugal will launch a 15-year through a pool of banks.
Stm (+3,02%) shone in Piazza Affari, boosted by the improvement in forecasts for the quarter by Micron Technology and Xilinx.
Diasorin was also positive (+0,41%) after the launch of the new Liaison Sars CoV-2 IgM test, CE marked and made available in the United States through the validation notification presented to the FDA.
Heavy banking stocks, with the sector index showing a decline of more than 1%. Banca Mps, after the initial leap, has passed into negative territory. After the green light for the launch of the bad bank, the Treasury is preparing a decree to regulate the exit from Siena: rumors speak of a possible interest from Banca Bpm (-2,24%), flatly denied by a spokesman.
The rise in the sector deflates: Mediobanca -3,15% after the letter from Bluebell (a 1%-strong English company headed by Giuseppe Bivona and Marco Taricco), Bper -2,94%. Ubi decreased (-2%) on the day of the conclave of Brescia members.
Storna Cattolica (-3,77%) after the rally of the last few sessions.
Weak Telecom Italia (-3,5%), which dropped 2,7%, weighed down by Open Fiber's 1,5 billion euro claim for damages for an alleged abuse of a dominant position.
In Aim, money on Confinvest (+2%), which has completed the functions of the infrastructure for the management of the traditional core business of brokerage of physical investment gold.
