Rates on the rise but good demand for the new benchmark Btp to 3 years. The Treasury placed the entire offer (4 billion) at a yield of 2,72% (against the 2,33% marked by the previous title), slightly lower than forecasts (2,80%), but the highest since October 2012. Bid to cover rose 1,5x. Less brilliant is the question for the title at age 15 (1,36 against the previous 1,7) but the entire amount, 1,5 billion, was placed at a yield of 4,88%, the highest since March. The 10-year BTP yields 4,51% (-1 basis point).
In the morning a note to customers of Goldman Sachs suggested favoring purchases of Italian bonds over Spain, after the increases in recent days: Madrid has been ahead on all maturities since this morning, from 3 months to 30 years. The Spanish Stock Exchange, the only one in positive territory, rose by 0,04%.
After the auction the reduction of Business Square it picked up speed: the Ftse Mib index lost 0,91% to 17427. The declines in the other lists were less marked: London -0,34%, Paris -0,44%, Frankfurt - 0,19%.
In Milan, the banks are retracing after yesterday's progress. They are weak Unicredit (-1,31%), Where's Banca (-0,95%) And Mount Paschi (-0,24%). It's an exception Banca Popolare Milano, up 1,5%, the stock is as usual supported by expectations of significant changes in governance, a hypothesis relaunched by some statements yesterday by the Chairman of the Management Board, Andrea Bonomi.
In great evidence stm (+4,4%): Goldman Sachs raised the target price to 9,50 euros from 8,50 euros, the recommendation remains "buy". JP Morgan confirms the "overweight" judgment with a target price of 8,8 euros and denies yesterday's rumors: Apple should have decided to keep the processors supplied by Stm on the previous models in the new iPhone too.
Worst title is Azimuth (-2,9%) also due to the news that the European Union is evaluating the opening of an investigation into the tax breaks granted by Ireland and Luxembourg to foreign companies. Also declining Rest -1,23%.
Finmeccanica rises by 0,97% also thanks to the promotion of Kepler Cheuvreux to "hold" from "reduce". Fiat -0,96%. Fiat-Chrysler and Guangzhou Automobile Group to build a new plant in China to produce Jeep models for the Chinese market. This was reported by the Chinese news agency Xinhua, according to which the plant will be able to produce 160 cars a year with a total investment of 574 million euros. But there is still discussion about where it will be built. For analysts it would be better to use the already existing and underutilized plant in Changsha. Meanwhile, Fiat reopens the October 2019 bond.
Prysmian -2,04% Pirelli -1,41%. Telecom Italy drops by 0,08% in line with the Stoxx telephony index unchanged. In the sector we are once again talking about mergers, Kpn announced this morning that the board of directors is negotiating with its first shareholder America Movil on the launch of an offer.
Bernstein's judgment holds back the cement manufacturers: Buzzi Unicem– 1,1% demoted to market perform, target price at 10 euros from 10,90 euros. The target also drops Italcementi (-1,8%).
