BAGS FOCUSED ON INCREDIBILITY. MILAN -0,4%
ONLY LOTTOMATICA SHINES, STM PUMPS
European stock markets under the sign of uncertainty on the eve of the European Council from which the market expects definitive measures to resolve the crisis in Greece and the public debt problem in Europe.
In Milan, the FtseMib index fell by 0,42% to 16.179 with however modest variations for the main blue chips. In Paris, the Cac index drops by 0,42%. Among the banks Unicredit loses 1,34%, Intesa now drops by 0,6%, Popolare Milano – 0,44%. Generali rises by 1,73%, Fondiaria-Sai by 1,48%. Fiat marks +0,53%.
The exception was Lottomatica + 3,5%, rewarded by Credit Suisse, which confirmed the outperform recommendation and raised the target price to 17,4 euro, from the previous 16,5 euro and by Kepler which raised the rating to Buy from Hold with a target price that goes from 15,7 to 13,5 euros. On the downside, however, the negative note is Stm -7,1% after the disappointing results announced yesterday evening which was weighed down by the Nokia effect. The CEO Carlo Bozotti commented: “We work in terms of cost reduction measures. The restructuring plan is an example of this. In addition we also work in driving the expansion of the customer base”.
BTP/BUND SPREAD AT 382, OIL AT 92
BP HIT THE TARGETS: ASSETS SOLD FOR 45 BILLION
However, investors' attention is focused on the news regarding tomorrow's European summit. The indiscretion that the haircut for banks on Greek debt could be as high as 60% is taking shape. The prospect of a preventive parliamentary vote by the Bundestag, as envisaged by the Constitutional Court, contributes to increasing the uncertainty. The risk is to delay the launch of the "global and ambitious" plan that the Franco-German duo has been promising for about ten days now. As far as Italy is concerned, there is no apparent reaction to the stalemate of the Council of Ministers.
The euro moved little and remains at high levels at 1,393 against the dollar, from 1,392 at yesterday evening's close.
Oil continues its upward movement: after gaining 4,4% yesterday, WTI crude advances another 1,3% this morning to 92,4 dollars a barrel. Brent is trading at 111,6 dollars.
On the government bond market, the yield on the ten-year BTP is unchanged compared to yesterday evening at 5,94%, the spread with the German Bund is 382 basis points (379 yesterday evening). Tomorrow begins the three days of Treasury auctions (20 billion in all).
In Europe, the best sector is the oil sector (Stoxx +1,4%) after the better-than-expected results of the giant BP (achieved the objective of selling assets for 45 billion in view of a payout for shareholders) up by 4%. Eni is unchanged, Saipem goes up by 0,8%, Tenaris +1,4%.
Among medium-sized companies, Maire Tecnimont is up again +3,3%, after the new order in the Middle East.
