Piazza Affari closes another brilliant session, +1,98%, at 21.336 basis points. Industrial stocks, asset management and banks are playing the role of the list. The latter, in particular, celebrate the drop in the spread and the negative records on the primary and secondary markets. In fact, the rally of the Italian paper continues, after Giuseppe Conte was appointed to form a new government, which he accepted with reservations and which should close the game by 7 September. The removal of the specter of an Italexit, with Brexit already creating many problems, pleases the European partners.
Berlin, for example, looks favorably on a "stable and progressive" executive, says German Finance Minister Olaf Scholz. In this climate, on the primary the yield of the new 0,96-year BTP benchmark placed this morning dropped to an all-time low of 5% and the 0,32-year bond was placed just a whisker from the record at 0,97%. On the other hand, on the secondary, the ten-year yield stops at 4,77%, while the spread with the Bund of the same duration falls by 167% to XNUMX basis points.
The race for government bonds does not only concern Italy, but extends to the euro area, where a further expansive ECB policy is expected. Christine Lagarde, who will be president from XNUMX November in place of Mario Draghi, argues that the central bank "has a rich toolbox at its disposal and must be ready to act" and that the bank has not yet "touched the minimum limit of interest rate policies. Even if it must be clear that low rates have "implications for the banking sector and for financial stability more generally".
However, the green wave on the markets today does not only concern Milan, which in any case is the best in Europe. A few minutes before the closure, Frankfurt rose by 1,2%; Paris +1,5%; Madrid +0,6%; Zurich +0,95% London gains one percentage point, while the pound remains stable against the euro after yesterday's drop following Boris Johnson's move to block the British parliament until October. A gesture that is triggering many protest reactions, an online petition reaching 1,5 million signatures and three urgent appeals, with three courts called to decide on the action of the prime minister.
On the non-European front, the opening of Wall Street is up, thanks to technological stocks and the easing of tensions with China on tariffs. Donald Trump tells a radio that negotiations are expected "at a different level", although he does not clarify what this means. On the other hand, the second reading of the stars and stripes GDP does not hold surprises (+2% from 2,1% of the preliminary reading), even if it offers the right to Trump for a new attack on the Fed "The economy is going great, with enormous upside potential – tweets the president – If the Fed did what it should, we would be a rocket!”.
A new alarm bell is ringing in Argentina, where the Buenos Aires stock exchange opens sharply down (-4,6% at the moment) following the decision by President Mauricio Macri to ask creditors (IMF included) for more time to repay them in the face of a worsening economic crisis. At stake are 101 billion dollars in total debt: the goal is to avoid what would otherwise be the South American country's ninth default. The Argentine peso is losing share (-3%) against the US dollar (59,9).
The euro-dollar is also unfavorable to the single currency with the exchange rate in the 1,056 area. Among commodities, gold is slightly tarnished and moves around 1545 dollars an ounce. Well matched oil: Brent 60,27 dollars a barrel, +0,57%; Wti 56,60 dollars a barrel, +1,5%.
Returning to Piazza Affari, the queen of the price list is Cnh, +5,18%, driven by a study by Merril Lynch. Bene Poste +4,7%; Prsymian +4,61%, to buy for Goldman Sachs; Leonardo +4,29%; Azimuth +3,1%; Stm, +3,27%. Among the banks, Banco Bpm +3,05% and Unicredit +2,89% stand out. Sales prevailed over only four titles: Pirelli -2,19%; Tenaris -0,65%; Moncler -0,18%; Amplifon -0,09%.
