Stock exchanges recover and gold stops its run. The reaction of the markets following the approval of the agreement on the 160 billion aid plan for Greece is marked by confidence. In Europe all the main markets rose with Milan trimming its gains with an increase of 0,67% after having jumped at the opening by 2,01% to 19.879 points.
In London, the Ftse 100 rose by 0,91, the Dax by 0,52% and the Cac by 0,87%. However, much of the euphoria was already discounted yesterday (Milan +3,76%), as indiscretions on the agreement under discussion at the European summit leaked out.
On the Asian markets, gold fell to 1.586,25 dollars an ounce (-0,3%) and the euro strengthened above 1,44. The ten-year BTP spreads are also breathing, fluctuating around 227 basis points, the lowest level since last July 8, with the yield rate of the ten-year BTP down to 5,19%. Now the focus is on the reactions of the markets and rating agencies.
There still remains the risk that the package will not be entirely appreciated by the rating agencies who had highlighted how the involvement of banks and other private creditors would have led to a "selective default". In the morning, Fitch took a first position on the agreement which in a report judges it "an important step" for the stability of the eurozone. For Davide Green, member of the general council of the International Swaps & Derivatives Association (Isda), the plan "should not have effects on credit-default swaps" in Athens because, with regard to the contribution of the private sector, it is clearly "expressed the principle of voluntary ”.
However, private participation in the Athens bailout "hit us hard", thundered the managing director of Deutsche Bank, Josef Ackermann, commenting on the agreement reached on the second Greek bailout package. The financial sector will support Athens on a voluntary basis with three options: swaps on portfolio securities, automatic renewal of those that come due, buy back.
A plan (in summary: a new EU-IMF loan; better credit conditions, voluntary involvement of the banks; the EFSF will be able to buy bonds on the market and support through a Marshall plan to support the growth of Athens) which overall has certainly beaten market expectations on the eve of the summit after Angela Merkel on Wednesday cleverly cooled expectations.
Stock exchanges quickly recovered on the wave of rumors of the successful outcome of the agreement. But the debate on the breadth of the solution continues. Overall, the plan is promoted but many observers believe the positive effect on stock market speculation is short-term, perhaps over the summer. What is still missing, not only because of Germany, is the qualitative leap towards the transfer of sovereign power in favor of a more united Europe in terms of fiscal and economic policy.
MARKET SQUARE CLICKS WITH THE BANKS, THEN FILE THE RISE
UNICREDIT SLIDES INTO NEGATIVE TERRITORY
The start-up shot of the Ftse Mib comes from the banks that also benefit from the easing of tensions on the Btp. At the start, Mps leaps by 6% and is suspended upwards and the other bank stocks which rise between 4 and 5%. In the morning the shot loses strength and the index slips into negative territory down by 0,28% weighed down by Unicredit (-1,95%) and Intesa Sanpaolo (-0,05%). Ubi yields around 0%. Mps rises by 0,73%, Bpm by 1,65% and Banco Popolare by 1,73%. The bank led by Pier Francesco Saviotti benefits from the rumors about the possible success of the sale of the 1,54% stake in Agos to the French Crédit Agricole, following the meeting between Saviotti and the top management of the French institute.
The members of the Mediobanca syndicate agreement (+1,59%), including Unicredit, are meeting today to discuss the amendments to the agreement. The recovery of Fondiaria Sai continues (+3,10%) also driven by the decision of the Ligresti family to take a step back from executive powers within the board of directors of the insurance company and the subsidiary Immobiliare Lombarda. In the Ligresti galaxy, Milano Assicurazioni also continues its rally, after the end of the capital increase.
FIAT HAS THE OFFICIAL MAJORITY IN CHRYSLER
Fiat is also running after the official achievement of the majority in Chrysler with 53,5% (to 58,5% by the end of the year) and is among the best stocks in today's list (+3,18%). Fiat Industrial is even better, rising by 3,30%. Saras dropped 0,87% after the downgrade of Credit Suisse which cut the rating to underperform. Deutsche Bank instead cut its rating to hold on Luxottica which lost 1,92% while Stm returned to positive territory (+0,62%) despite the cut to neutral by Exane Bnp Paribas.
THE QUARTERLY SEASON OPENS
The appointments with the quarterly results of the companies will start from next Monday. The appointments include: Monday Fiat Industrial, Luxottica and Stm; Tuesday Ansaldo Sts and Fiat Spa; Wednesday Finmeccanica, Saipem, Snam Rete Gas, Mediolanum and Pirelli; Thursday Lottomatica, Parmalat, Mediaset, Terna and Azimut; Friday Eni and Autogrill.
