Taurus doesn't give up. Under the impetus of some positive macro data (the decline in unemployment benefits in the first place) purchases have returned to revive Wall Street. The Dow Jones index gained 1,06% and the Nasdaq 1,08%. The S&P 500 index (+1,39%) set a new all-time high at 2121,07. The trend continued in Asia: Tokyo and Hong Kong, both up by about half a percentage point, are starting to end the week with a plus sign.
After two days of decline, the European stock exchanges also reacted with a strong recovery. The FtseMib index of Piazza Affari rose by 1,4%, to 23.458 points, the reaction of the Paris (+1,5%) and Frankfurt (+2%) stock exchanges being even stronger. In the evening, the euro/dollar exchange rate returned to 1,135 yesterday evening, the same level as the previous close, after rising during the day to its highest level since last February at 1,142.
They have contributed to curbing the progress of the euro the words of Mario Draghi, pronounced yesterday in Washington. "Although we have already seen a substantial effect of our measures on asset prices and economic confidence - said the ECB president - what really matters is that we can see an equivalent effect on investment, consumption and inflation ”. Because of this, "we will fully implement our purchasing program as announced and, in any case, until we see a sustained adjustment in the inflation trend".
Furthermore, he added, after seven years of severe crisis, households and businesses are still reluctant to take risks. Therefore the monetary institution will have to keep up its stimulus measures. So Mario Draghi, a "brave man" according to the director general of the IMF Christine Lagarde, he crushed speculation about the possible early end of Qe.
SUPER GENERALI THANKS TO THE BEST RESULTS SINCE 2008
The recovery in bond prices (the 10-year Bund at 0,74%) gives new life to the insurance sector, struggling with the remuneration of life policies. The Stoxx European index of the sub-fund closed by +1,1%, the German Allianz rose by 2,3%.
Leading the race though Generali, the best blue chip that closed up 3,8% after announcing a profit for the first quarter higher than expected: 682 million euros, up 3,3% compared to a year earlier. The consensus of analysts forecast a net profit of 646 million.
Operating income grew by 6% to 1,3 billion, recording the best performance in the last seven years. The result was favored by the Life segment which saw an operating profit of 823 million euro, with an increase of 8,2%, while that of the Non-Life classes recorded a drop of 4,6% to 505 million. Above all, the strong increase in Solvency I to 168% (177% after the completion of the BSI sale) is pleasing. The stock will issue a dividend of 0,60 euro per share next Monday 18 May, yield 3,50%.
In the banking sector, Monte Paschi rebounds (+1%) after having obtained the go-ahead from the European Central Bank for a capital increase of 3 billion euro. Also in great evidence were Banco Popolare (+2,5%) and Mediobanca (+1,7%). Unicredit rose by 0,7%, Intesa +0,5%. Negative closure for Popolare Milano (-0,5%).
FERRAGAMO BRAKS. EURAZEO MAKES CASH WITH MONCLER
Luxury reverses direction, after Wednesday's strong increases. Ferragamo (-5,2%), the worst blue chip of the day, stands out among the stocks in the greatest decline. Realizations started after the quarterly, despite slightly better data than the consensus. The luxury company closed the first quarter of 2015 with a net profit of 32 million euros, up 17% compared to a year ago.
Revenues amounted to 327 million euros (+10%), operating profit rose by 12% to 47 million euros, slightly better than expected. Net financial debt decreased from 49 to 34 million euro "thanks to the significant generation of cash flow". Despite the growing results, most analysts believe the quotation achieved is fair. At these prices, only 12% of analysts surveyed by Bloomberg (3 out of 24) recommend buying.
After the day of records (Wednesday +10%) Moncler corrects downwards (yesterday -2,9%): the French investment company Eurazeo has reduced its stake from 23,3% to 15,5% through a placement with investors institutions of 19,5 million shares at a price of around 17,40 euro. Tod's is recovering, eliminating its initial losses (down by 2,1%) and gaining 2% at the close. Brilliant Luxottica (+3,2%) and Yoox, which rises by 2,3%.
THE INDUSTRY STARTS AGAIN. JUVE ALSO RISES ON THE STOCK EXCHANGE
Eni erased initial losses and closed up 1,5%. Brent is trading at $66,8 a barrel (unchanged). Negative Saipem (-0,3%), despite the American investment fund Dodge & Cox having increased its share to around 9,4%. Saras closed down 1,6% after announcing a lower than expected quarterly profit. Enel did well (+1,5%) and the utilities: Atlantia +3,3%, Snam +1,8%.
Industrialists are on positive ground: Fiat Chrysler +1,8%, StM +1,7%, Prysmian +1,9%, Finmeccanica +1,4%. Brembo + 2,35% after the quarterly. Also worth mentioning is Salini Impregilo (+1,03%), which in the evening communicated a net profit more than doubled at the end of the first quarter. Finally, Juventus rallied (+3,45%) afterwards qualification for the Champions League final.
