Piazza Affari rebounds, partially recovering yesterday's drop, in line with the other European markets. The index rises by half a point and returns to almost 22 points Spotlights always focused on tomorrow's ECB management, which should launch new expansionary measures. The index rose by approximately 0,7% under the pressure of the banks which are already discounting the stimuli arriving from Frankfurt. The German Stock Exchange also did well +0,85 ahead of Paris and Madrid +0,1%. Best of all, London with an increase of more than one percentage point: the prospect of a no-deal Brexit is further away.
The leap forward of the London Stock Exchange +6% should be noted. The company that manages the London Stock Exchange (but also that of Milan) has confirmed that it has received a purchase proposal from the Hong Kong Exchange and Clearing, already present in London through the London Metal Exchange. The offer is worth 39 billion dollars.
The pound was little moved at 1,2353 against the dollar, not far from the six-week high of 1,2385 reached in recent days thanks to the fading prospect of a no deal exit. Expectations of a further rate cut by Frankfurt are not holding back the euro at 1,1044 against the dollar. Since June, however, the single currency has lost 3%.
Traders are convinced that the ECB will loosen its monetary policy tomorrow. But the size and composition of the stimulus package is still under discussion. The Wall Street Journal points out that this time the front of the opponents of the president's line is stronger because doubts are growing on the usefulness of a further reduction in rates.
In exchange, according to Reuters, the EU is preparing for a review of the rules on public finances. The document drawn up by the Finnish presidency states that "While the original rules had the sole objective of guaranteeing solid and sustainable public finances, growing attention is being paid to the role of public finance policy in economic stabilization".
According to the director of the European department of the International Monetary Fund Poul Thomsen “Italy must implement a fiscal consolidation. I do not doubt that this can be achieved by intervening on the budget, but we also need to grow. The availability of room for maneuver in terms of the budget depends decisively on how credible the medium-term plan for reorganizing the public finances is,” he added.
The first 12-month BOTs "signed" by the new Treasury Minister Gualtieri were placed this morning. Securities worth 6,5 billion were assigned in the Bot auction and the average yield fell to -0,226% from 0,107% in the August placement. Rates thus returned to negative territory after the summer storm and the rise in the spread linked to the crisis of the previous government. The 1,04-year BTP trades at 2%, +0,53 basis points. Bund at -1% (+XNUMX basis points).
WTI oil is up 1,5% to $58,2 a barrel. Iraq's oil minister said this morning that deep cuts in production will also be discussed tomorrow at the meeting of OPEC enlarged to include Russia. Eni +0,3%. HSBC cuts the judgment to Hold, target price at 14,6 euros, from the previous 17 euros.
In anticipation of the Frankfurt meeting The Eurostoxx Banks index (+1,5%, 89,0 points) accelerates upwards and reaches new highs since the end of July. The index of Italian banks also shines (FT Italian Banks +1,3%, 8.390 points) reaching the same level. Unicredit rises by 1,47%, Intesa +0,54%. Banca Bpm +1,41%.
Good news also on the tech and tlc front:
- Strong increase Stm +3,8%. The better climate on duties between the US and China benefits together with the driving force behind the presentation of the new i Phones whose main novelty concerns a triple camera system on the Pro and Pro Max models, while the entry level has received an update with the dual camera. The surprise concerns the price of the entry level model, set at $699, with a cut of $50 (7%). 13% of the turnover of the Italian-French jv depends on supplies to Apple.
- Prysmian also rose +2,6%, which confirmed that the construction of the Leonardo da Vinci cable-laying ship (investment of 170 million euros) is proceeding according to plan. The new ship, which joins the three already used by the group, will strengthen the ability to carry out projects in the submarine sector.
- Advance Tim+1,07%. Over the last year, the company has managed to stabilize the average revenue per mobile customer which has returned to growth compared to the previous quarter (12,5 euros/month in June) by around 1 euro, buffering the advance of Iliad which today boasts a market share of less than 5%, still far from the target of around 10% necessary for operational break-even.
- Of note outside the main basket are Brembo +3% and Technogym +4%.
The Eurostoxx Banks index (+1,5%, 89,0 points) accelerates upwards and reaches new highs since the end of July. The index of Italian banks also shines (FT Italian Banks +1,3%, 8.390 points) reaching the same level.
