The mood of the German business community is improving. The recovery of government bonds proceeds in forced steps. On the wave of these favorable winds the ship of Business Square sails at the top of the fleet of European Stock Exchanges: in Milan, in fact, the FtseMib index rises by 1,3%, London gains 0,8%, Paris +1%, Frankfurt +1%.
Spectacular bounceZew index, the gauge of German business confidence: from 5,4 in January to 22, more than double the forecasts. Less unexpected but even more welcome is the new step forward for Italian government bonds, which are starting to celebrate the record ten-week rise at this rate: the ten-year BTP is traded with a yield of 3%. The spread with the German Bund dropped to 309 points, 3 fewer than yesterday.
It is the consequence of the favorable outcome of the Bot auctions of the morning. The Treasury has placed 12 billion BOTs: 3,5 billion quarterly at a yield of 0,492% against 1,907% in the previous auction which dates back to last September. Even more significant the success of the 12-month Bot offer: 8,5 billion allocated with a yield of 1,405%, the lowest since August 2010 against the 2,23% set in February. The good pitch of fixed income is also affecting corporate issues. Luxottica +1,5% yesterday placed a 500 million bond in just a few minutes and at very convenient rates.
The president of the ECB takes care of cooling the euphoria, Mario Draghi, i.e. the one who more than anyone made the rally of Italian and Spanish stocks possible. From Paris, the central banker warns that, in the absence of structural reforms, it will be difficult to keep the euro area together. Draghi also stressed that the eurozone economy is stabilizing at depressed levels; banks, he added, should use the ECB's liquidity offer to strengthen balance sheets, including cutting dividends and bonuses.
While waiting to accept Draghi's invitation, banks are celebrating all over Europe. Leading the race in Milan is Banco Popolare +3%, followed by Intesa +2,5% and Unicredit +2,7%. MontePaschi -0,4% goes against the trend.
But the real absolute star of the list is without a doubt Pirelli +4,3%, which continues its rally: by now the Bicocca stock has exceeded the highs of the decade and shows no signs of stopping thanks to the propellant of the promotions arriving from numerous brokers after the good balance sheet data. On positive ground Fiat Industrial +1,1% and Fiat + 0,4%.
The day was favorable for Finmeccanica +2,1% ed Ansaldo +1,3%, but also for cement manufacturers (Buzzi +4,2%, Cementir +4,1%) and for the stocks most sacrificed in past sessions: Diasorin rebounds +1,8%, recover Campari + 1,2% and Mediaset + 3,6% after a series of low days.
Continue, albeit at a slower pace, the march of Parmalat + 0,6% after the leap on the eve (+9%).
