Draghi said what investors wanted to hear: at its meeting on 3 December, the ECB will review the securities purchase program envisaged by Quantitative Easing and will implement other expansionary measures in order to bring inflation back to the level desired by the ECB , i.e. just under 2%, far from the latest data for September (-0,1% on an annual basis). Investors are thus aiming for a strengthening and lengthening of the bond purchase programme. Draghi himself, usually clear and explicit when the situation requires it (unlike the Fed), said that Qe will continue until the objectives are achieved, i.e. beyond September 2016.
Naturally, the first to celebrate were the European stock exchanges. In Milan, the FtseMib index rose by 1,6%, Paris gained 2,2%, Frankfurt +2,3%, Madrid +1,8%. The trend in futures signals sharp rises for this morning's opening.
The ECB president's shock did not stop in Europe but affected all markets at all latitudes. Asian stock exchanges celebrate this morning: Tokyo rises by 2,2%, Hong Kong +1,1%, Seoul +1,3%.
THE DOLLAR DOESN'T STOP THE BIG USA: ALPHABET, MICROSOFT AND AMAZON IN FLIGHT
Great session also for Wall Street: the S&P index rose by 1,7%, Dow Jones and Nasdaq +1,7. But the results of some Big names also set the tone for the US price list. The buying spree picked up speed after the Stock Exchange. Alphabet (formerly Google) jumps 9,6% on the wave of the announcement of a buyback. Close behind is Microsoft (+7,2%). Amazon does even better (+10,6%) after the announcement of spectacular data. However, the primacy belongs to e Bay (+13,6%). The old economy defends itself thanks to Mc Donald's (+8,1%).
THE SPREAD IS BACK BELOW 100
The effects on currencies and bond markets are even more significant. The euro fell sharply against the dollar to 1,115, from 1,133 at the previous close. In Asia the common currency fell to 1,1072. The yen falls against the US currency to 120,71.
Government bond yields are down sharply. The 10-year German Bund rate is at 0,50%, from 0,56% yesterday. But the real rally was that of the BTPs. The 13-year bond fell 1,47 points to 1,60% from 100% yesterday. And so the spread fell below 97 points to 17, the lowest since last March XNUMXth.
The effect of Draghi's words is multiplied by the feeling that all banks can review their strategies in the name of new stimuli. There is certainly no prospect of an increase in US rates at the next Fed meeting. In seven days, the Bank of Japan summit could join the ECB's choices, casting aside the doubts of the last few weeks.
EUROPEAN TLC SUPERSTAR: TELECOM ITALIA +5,1% BEST BLUE CHIP
The European rally was led by TLCs: the sector's Stoxx, up 1,5%, was the best of the day. Telecom Italia too Telecom Italia wins the title of best blue chip on Piazza Affari with a gain of 5,1%, the largest on a daily basis since the end of August, which brings the price to 1,0850 euros.
The boost, which began even before the words of the ECB president, came from the excellent results of Orange (+8%), the former French monopolist which closed the third quarter with sales and EBITDA up for the first time since 2009, and from the prospect of a recovery in M&A in Europe: Deutsche Telekom (+3,8%) is considering the sale of T-Mobile Netherlands with the aim of reducing debt and raising cash to purchase wireless licenses in the USA. The Telephony sector completes the party (+5,4%).
LOW RATES PUSH UTIITIES. ENEL MONEY IN PRAGUE
The utilities, the sector most sensitive to the drop in the cost of money, are in great evidence. Enel Green Power (+2,1%) and Snam (+2,1%) are up. Enel is doing even better (+2,7%) on the rise after a weak start. According to Reuters, an agreement has been reached to sell its stake in Slovakian power group Slovenske Elektrarne to Eph, which is headed by Daniel Kretinsky, a business lawyer known for buying Sparta Prague, one of the most popular football clubs in the Czech Republic. Czech.
LEAP OF GENERALI. ONLY BPM SUFFERS
The Draghi wave also drove up financial stocks. The leap of Generali stands out (+3,8%) against an increase in the European sector index of 2,6%. Thanks to yesterday's recovery, the Lion of Trieste climbs back to 17 euros, to the levels of the beginning of 2015. Azimut is also doing well (+4%). Among the banks, Unicredit rose by 1,6%, Intesa +0,56%. Better Montepaschi (+3,3%) and Ubi (+2,3%). The exception is Banca Popolare Milano (-3,63%) after an even deeper red session: operators do not like the prospect of a merger with Carige.
THE FERRARI RACE CONTINUES. WELL ALSO STM
The Ferrari GP continues on Wall Street: after the +5,8% of its debut yesterday, the Rossa gained another 3,45% to 56,9 dollars. Fiat Chrysler (+1,3%) recovered only a part of the 5% loss recorded on the previous day. Better Exor (+2,3%). CNH Industrial was up 3,6%. Among industrial stocks, Stm shines (+3,1%) galvanized by the results of Texas Instruments, up 10% on Wall Street. Prysmian (+2,2%) and Finmeccanica (+1,7%) also performed well.
LUXURY RAISES ITS HEAD
Redemption of Luxottica (+4,7%) and Moncler (+3,3%). Ferragamo gains 2,6%. The oil markets were also positive: Eni up 1,6%, Tenaris +2,2%.
