Euro still on the rise, stock exchanges barely moved. This is the verdict of the markets in the aftermath of the ECB's decision to confirm the continuation of Qe, postponing the examination of the methods and times for reducing purchases to October. Piazza Affari +0,3% travels in positive territory, Ftse Mib index just above 21.800. Similar trend for Madrid, plus sign also for Frankfurt 0,02%. Below parity Paris -0,2% and London -0,10%.
Continued, for the fifth day in a row, the decline of the dollar slipped to the lowest levels since January 2015 at 1,2060. Gold went up to 1.357 dollars in the morning, on the high of the last 52 weeks. Now around $1.350. Oil's rebound continues, Brent has reached 54,7 dollars a barrel, despite the increase in US weekly inventories. In addition to the effects of the hurricanes on refinery activity, it should be remembered that Saudi Arabia will cut crude oil sales to its customers around the world in October by 350 barrels a day. Eni -0,4%, Saipem -0,3%.
The fall in yields on government bonds in the Eurozone has stopped. The BTP goes up to 1,975% from 1,91%. The spread widens to 166 basis points. The correction was triggered by the news from Reuters that the ECB meeting agreed on the need for a reduction in stimuli to be decided with the broadest possible consensus. Among the hypotheses there would be the cut of asset purchases to 40 or 20 billion euros per month from the current 60 and a time extension of the purchases of 6 or 9 months.
In the wake of the news, excitement increased in the banking sector ahead of possible changes in monetary policy in the autumn. The credit sector is the best in Europe (Stoxx +0,8%). Does Unicredit earn? 1,1%. August with a +3% was the sixth consecutive month of growth for the institute. Banco Bpm +1,3%, Bper Banca +0,7%, Intesa +0,7% were also positive. Generals +0,40%. This morning Deutsche Bank raised its target price to 16,0 euros from 15,20 euros. In July he had already adjusted it from the previous 14,30 euros.
At the same time, the Utility sector weakened (-0,7%). Enel drops by 0,2%, yesterday marking new highs since 2008. On the European industry front, new movements in the automotive world should be noted. Abrupt stop in Paris for PSA -3,8%. This morning Exane Bnp Paribas cut the recommendation to Underperform, from the previous Neutral. In the report, the French broker points out that the market scenario is worsening in Europe: the demand for is weakening and competition in the SUV segment is becoming more fierce.
In addition there are the rumors of Le Monde on exhaust fumes: the newspaper, based on the results of an investigation by the French judicial authorities, states that on 2 million Peugeot and Citroen branded cars, software is installed capable of altering the value of nitrogen oxides in the combustion gases. The company issued a statement this morning denying the allegations. Conversely, Volkswagen rose +0,5% after the news of wanting to proceed with the sale of non-core assets that weigh up to 20% of its annual revenues. CEO Thomas Mueller also denied the hypothesis of a merger with Fiat Chrysler +0,3%.
Rebounds after the Ferrari skid +1,6%, after -7% yesterday. Well Exor +1,9%. Leonardo +1,9% and Prysmian +0,7% shine among the industrialists. Stm is also advancing +0,6%, which reached its highest since 2006 thanks to the news that from 18 September it will join the Cac40, the main index of the Paris Stock Exchange, in place of Nokia.
Also worth mentioning: Telecom Italia unchanged, Mediaset slows down -0,5%. In Ferragamo luxury -1%. Among the mid/small caps: Sabaf +2,1%, Sias +2,2%, Caleffi +2,3%. New increase for Juventus +2,5%.
