MARKETS DOWN AGAIN: MILAN -1,9%
EU CENTRAL BANKS ARE BUYING BTPs
Incoming messages from central banks have not satisfied the markets. The ECB underlined the risk of stagnation for the EU, Ben Bernanke did not give concrete indications on the next stimuli to revive the economy. Attention now shifts to the G7 finance ministers meeting in Marseille. As a result, European stock exchanges, especially the peripheral ones, have slipped into reverse gear. The FtseMib index of Piazza Affari fell by 16% around 3,25 pm with widespread sales on all blue chips. Madrid is down by 2,2% London loses 0,43%, Paris -1,43 and Frankfurt -1%%. Meanwhile, waiting for more precise indications on future ECB interventions on BTPs and Bonos, government bonds are once again suffering: the yield on the BTP 10 rises to 5,32% (+8 points), the spread with the Bund widens to 350 basis points. According to the Reuters agency, BTP purchases are underway by the various central banks of the euro zone, including the Bundesbank. The euro devalues to 1,381 against the dollar from 1,388 at yesterday's close. We are at the lowest since March, after Trichet said that inflation in 2012 will fall below 2%.
CARS, CEMENTS AND STM IN THE SIGHT
BANKS WITHDRAW, BPM RISES
As usual, the stocks most closely linked to the economic cycle suffered the most conspicuous slowdown, such as the car industry: Fiat fell by 3,4%, Fiat Industrial fell by 3,7%, Pirelli by 2,4%. But the deepest decline among the blue chips concerns Stm (-4,4%) after tonight's profit warning by the American Texas Instruments, the world's leading company in telephony chips, the sector which, although conferred to the jv St-Ericsson (however consolidated in Stm), gives more concern to the multinational led by Carlo Bozotti. Strong declines also for cement manufacturers: in particular Buzzi lost 4,6% after Ing lowered the recommendation to sell. The banking sector also fell sharply, with the exception of Banca Popolare Milano (+1%) which was welcomed by the rumor that Matteo Arpe's entry into the share capital of Sator was certain. Good news in the eyes of the market which appreciates the former CEO of Capitalia much more than the current president of Piazza Meda, Massimo Ponzellini. Unicredit, on the day of the confrontation between managers and shareholder foundations, lost 3,9%. Intesa drops by 2,3%. Banco Popolare (-4%) and MontePaschi (-3,2%) are doing worse. Negative balance also for Eni - 0,5%, Enel -2,6% and Telecom Italia -2%. Among the mid caps, two stocks in the spotlight: Geox + 7,8% thanks to Citigroup's buy-from-sell promotion and Edison + 6,3%.
