European markets close in the red, still in the wake of the rejection of the health reform proposed by Donald Trump in Congress. The dollar falls, while Wall Street opens negative; T-bonds rally at the expense of shareholders.
Milan trims losses in the final and stops at -0,32%, remaining beyond the threshold of 20.000 points, with financials in no particular order. On the shields Ferrari (+2,87%) which, after the victory in Melbourne, crosses the finish line first also in the Stock Exchange. The trend of the other continental markets was similar, despite a series of encouraging macro data: Frankfurt -0,57%, London -0,59%, Madrid -0,14%, Paris -0,07%.
No support is coming from New York, with the Dow and S&P 500 falling fractionally in early trading and the Nasdaq flat. The sales mainly hit the big American banks, while the new president's electoral promises seem more difficult to keep today.
The dollar weakens against all major currencies. The euro appreciated by 0,44%, reaching 1,088. Oil below the $48 threshold: Texas WTI crude drops 0,73% to $47,62 a barrel while London Brent drops 0,41% to $50,71. OPEC and non-OPEC countries are expected to meet again in April to evaluate a six-month extension of production cuts. According to the Russian energy minister, Alexander Novak, however, it is still too early to make a decision.
In this context, gold climbs back to 1254,60 dollars an ounce. +0,9%. Positive session for Italian bonds: the ten-year spread with the German bund drops to 179.50 basis points (-1,86%), yield 2,21%.
Returning to Piazza Affari: the prancing horse pulls the index finger thanks to the victory in Formula 1, but during the day other titles come forward. Among the financials, Banca Mediolanum stands out, +1,05%, thanks to the "buy" opinion of Citigorup and the increase in the target price; Banca Generali +0,68%. Purchases on Recordati, +1,39%; Campari did well +0,49%. Positive postal services +0,56%.
In good shape the utilities: Snam +0,96%, Italagas +0,56%, Terna +1,36%, Enel +0,51%. Tonica Telecom, +1,68%, with 2016 accounts and fiber optic programmes. According to the news agency, Luca Cordero di Montezemolo could become president in place of Giuseppe Recchi. The changing of the guard at the top of the telephone company is expected in May.
However, the sales hit heavily the industrial stocks most exposed to the dollar: Buzzi -3,27%, Cnh -2,73%, Stm -2,91%, Fractional drop for FCA -0,6%.
Oil prices are down, Saipem -2,03% and Tenaris -2,22%, while Eni, -0,13%, contained the losses.
Banks are weak: Unicredit, -1,11%, Banco Bpm, -1,54%, Bper, -1,8%. Intesa contains the damage, -0,24%, which has set itself a new target on NPLs and expects a 15 billion euro drop in non-performing loans by 2019.
Out of the main basket the rally continues Stefanel, +39,47%, while revenues are being raised on publishing titles. Il Sole 24 ore was down, -8,9%, RCS -3,3%. Cairo was weak, -0,16%, after the 2016 accounts.
News also for Mps, now off the list for several months. “We are in the final stages of talks with the Commission,” said Danièle Nouy, head of banking supervision at the ECB. And when asked if the Sienese bank was solvent three months after having applied to the Italian state for the precautionary recapitalization, she replies: "Yes, otherwise we would not be discussing the precautionary recapitalization"
