BANKS RESIST MOODY'S. SUFFERS MPS
MILAN +0,33% THE SPREAD BELOW 420 BP
Positive departure for Piazza Affari and the other European Stock Exchanges. In Milan, the FtseMib index rose by 0,33% to 13705. The London Stock Exchange rose by 0,25%, Paris +1,01%, Frankfurt +0,5%. Madrid advances by 0,3%. On the government bond market, the Btp/Bund spread drops to 419 from 424 at yesterday evening's close, before returning to 13 around 422pm.
Despite the series of downgrades decided by Moody's, banks mark moderate increases: Unicredit +0,88%, Intesa +2,13%, Ubi +0,16%, BPM +0,7%. MontePaschi now falls by 3,12%, Mediobanca -0,88%, Banco Popolare -0,97%.
Vehement reaction from the Abi to the verdict of Moody's judged "irresponsible". Last night Moody's downgraded 26 Italian banks, referring to the recession and growing bad debts. Some institutes were even cut by four notches. All institutions have a negative outlook.
Istat announced today that according to preliminary estimates the Italian GDP in the first quarter of the year it decreased by 0,8% on the previous quarter and by 1,3% on an annual basis. It is the third consecutive quarter of the fall in GDP after the zero change in the second quarter of 2011. Analysts tend to attribute the main responsibility for the debacle to the consumption and investment chapter, the most directly affected by Mario Monti's austerity measures so much appreciated in Europe.
In the first quarter German GDP saw 0,5% cyclical expansion, to be compared with the +0,1% of the consensus and with the -0,2% of the fourth quarter of 2011. On a trend basis, growth is 1,7%, accelerating compared to the 1,5% of the previous three months. But investors' and businessmen's expectations are falling: May's Zew index fell to 10,8 from 23,4 in April, economists had expected 19.
On the debt front, it should be noted the news that Greece will pay holders of government bonds 430 million euros which are ripening today. A government official told Reuters this morning. The remaining amount of the bond had not been traded under the debt swap the country completed in March. But the formation of a new government seems highly unlikely.
From industrial stocks, Fiat Industrial rose by 1,89%, Fiat +1,28%. StM did well, up 1,96%. Brembo positive +2,3%.
Between the utility, Enel is now down 0,49%. Sharp reverse for A2A -2,14%. Eni -0,12%, Tenaris gains 1,19%.
The acquired ones are back on Ferragamo after the good results of the quarter, the stock rose by 2,34%.
A busy series of corporate appointments is scheduled for the day, including the conference call on 1st quarter results by: Banco Popolare (18,30pm), Campari (13,00pm), Hera (15,30pm), Intesa Sanpaolo (15,00pm), Iren (17,00pm), Sabaf (15,00pm) and Terna (18,30pm, XNUMX).
