Volatility and uncertainty on the markets that look to Spain but also to the weak data from China, Australia and Europe. The main European markets close just above parity with the exception of Paris: Milan rises by 0,25%, Frankfurt by 0,22%, London by 0,28% while Paris drops by 0,24%.
In China, the services PMI fell to 53,7 points from 56,3 points in August while in Australia, Australia's September trade balance fell more than expected last month. In the Eurozone, the PMI of the services sectors fell to 46,1 points from 47,2 (however it is a figure slightly above expectations by 46 points, with the slowest drop in the last eight months), experiencing a slight increase in Italy and Germany but a sharp decrease in Spain.
Concerns about growth prospects thus weakening the reaction to the positive data from the USA: the index on the non-manufacturing sector rose above expectations to 55,1 points from 53,7 and in September in the private sector, according to ADP estimates, 162 new jobs were created beating expectations (but down from the previous month). The official figure including the public sector is expected on Friday.
Wall Street opens positively and tries to accelerate at the closing of the European Stock Exchanges: the Dow Jones rose by 0,37% and the Nasdaq by 0,74%. The dollar benefits from risk aversion pending the rescue of Spain and recovers against the euro. The euro-dollar exchange rate drops to 1,2904. WTI oil loses 3,32% to 88,84 dollars a barrel while gold gains ground to 1.780 dollars an ounce.
Lo Btp-bund spread it is on the rise above 360 basis points and yields around 5% (5,04%) while the bond-bund spread is up to 436 points.
Today Portugal has placed on the market three-year bonds worth 3,76 billion euros within an operation to lengthen the average life of the debt with the aim of lightening the debt that the country will have to repay next year. At the same time, securities maturing in 2013 were withdrawn from the market for the same amount, 3,76 billion.
On the BTP Italia front, the Treasury will evaluate at the end of the year whether to issue the BTP Italia even on maturities other than those used up to now. “We have to think about it. We chose to issue with a 2016 maturity because 2016 was a year with a light maturity profile. 2017, on the other hand, is heavier from this point of view. In any case, we will evaluate at the end of the year”, said Maria Cannata, director general of public debt at the Ministry of Economy.
In Spain, said Spanish Economy Minister Luis de Guindos, the majority stake in the Bad Bank created to channel the toxic assets of Spanish banks will be made up of private investors. Details on the bank recapitalization plan will be explained in the coming days and that the green light from the European Commission is expected in early November. The first 30 billion for the rescue of the Spanish banks are already available and the nationalized banks will be able to receive them as soon as they present their recovery plans. Meanwhile, the EBA has reported that the recapitalization operation ordered by the Authority led between December 2011 and 30 June 2012 to an increase in the assets of European institutions of over 200 billion euros: The 27 banks that had initially shown a hole' compared to the objective of a Core Tier 1 of 9% by the end of June, they strengthened their capital by 115,7 billion.
Exor +1,73%, Telecom Italia +1,68% shines in Piazza Affari after yesterday's drop in the wake of rumors reported by the Veja website on a possible opening of an investigation into the subsidiary Tim Brasil by the CVM and SEC authorities for alleged accounting irregularities. In a note, Tim Brasil branded the rumors as unfounded and underlined that the news was absolutely false, deceptive and expressed in erroneous terms. The group is unaware of any investigation or inquiry conducted by the SEC and has not received a request to comment on the matter. Telecom Italia, reported Chairman Bernabè, will decide by the end of the year whether to continue with the unbundling of the network. Fitch today confirmed its BBB long-term debt rating with a negative outlook.
Also in the light Impregilo +1,68%, and the banks with Banco Popolare +1,57% and Unicredit +1,44%. Positive day also for the editorials. Mondadori leaps by 8,96% after the promotion of Mediobanca to outperform from neutral on the bet that nice surprises will come from the book division, which could compensate for the further deterioration of the advertising market. L'Espresso +3,41% and Rcs +1,18% also rose. Tomorrow Proto will deposit the syndicate pact with Consovb among the investors who have joined the investment reaching 2,8% of the capital "If Consob has opened a file on us, it has done well - said the financier, CEO of the Proto Organization - it is a supervisory body and must supervise. As far as I'm concerned, it should open it up to all the protagonists of Italian finance, perhaps many of the economic catastrophes that have occurred could have been avoided and many savers would not have lost their money". At the bottom of the Ftse Mib A2A -1,09%, Mediobanca -0,98% and Eni -0,93% in the wake of the decline in crude oil. Saipem +0,40 after a 550 million dollar contract.
