Also in Europe, as in the USA, economic confidence rises to its highest level since 2000. In fact, the sentiment index reached 114,7, at the levels of October 2017. The good economic situation, combined with the rise in the American markets, translates into a general progress of the price lists. In Milan, the Ftse Mib index (+0,7 approximately) is close to 22.500 points. Frankfurt does better (+0,8%), ahead of Paris (+0,6%). Madrid (+1,25%) is in full swing: the Catalan crisis hasn't slowed down the robust growth of the economy.
In negative ground London, down by 0,5%, sunk by the rise in the pound after the news of the agreement between London and Brussels on the economic indemnity of divorce from the Union, although denied by the European negotiator Michel Barnier. The British currency has shot up to a two-month high: the euro/sterling cross dropped 0,44% to 0,8831, while the pound/dollar cross stood at 1,3401 (+0,33%) pushing downwards the securities most exposed on the international front and linked to the US market, such as British American Tobacco, Diageo e GlaxoSmithKline.
The euro-dollar cross trades at 1,186, little moved compared to yesterday's close. The possible "shutdown" of the US government after the Democrats deserted a meeting with President Donald Trump on the budget issue weighs heavily. Wall Street futures anticipate a 0,3% higher start that could update yesterday's triple record.
Bitcoin arrived tonight at $10.400, with a 5% increase that brings last month's gain to 50%. On the macro front, attention is also paid to the 'flash' estimate of German inflation for November. While awaiting the overall figure, from five of the six lander that contribute to the national average, the preliminary numbers show an encouraging recovery, getting closer to the official ECB target of "lower but close to 2%".
The Btp/Bund spread contracted to 140,9 basis points after the Italian Treasury placed bonds worth 3,5 billion euros. For the ten-year BTP the yield fell by 13 basis points to 1,73% while on the seven-year Ccteu the yield fell by 14 basis points to 0,46%.
Quotations of crude down, penalized by doubts about Russia's willingness to extend the agreement to limit production. Around 12 noon Italian time, the Brent contract due to expire in January yields 66 cents to 62,95 dollars a barrel. The similar expiry of US light crude oil falls by 52 cents to 57,47.
Positive banks in Piazza Affari, also supported by the positive opinion of the ECB on the capital solidity of some institutions: Bper Banking + 3,5% Credit Emiliano +2%. Frankfurt, following the conclusion of the annual Srep supervisory review process, set a minimum capital level target (Cet1 phased-in) of 7,37% for 2018 for the Reggio Emilia-based bank. The Cet1 at the end of September was 13,37 %.
Unicredit earn 1,4%, Understanding + 1,9%. Ubi rebounds by 2,3%. Also recovering Valtellinese credit (+0,86%): around 50-100 million euros should come from small investors in the capital increase. In asset management, FinecoBank (+3,3%) marks a new historic record. Banca Generali (+1,7%) and Azimut (+0,7%) are also on the rise. The utility sector is brilliant.
Enel (+1%) marks new highs since 2008. Acea (+9%) is today's best stock. Kepler Cheuvreux and Mediobanca, the day after the presentation of the new business plan, raised their recommendation. Iren (+1,6%) by Christmas the green light could come from the most important municipalities that control Acam La Spezia, to transfer control. Rising sharply Sogefi, which jumps by 6,5% after the "Technology day" took place yesterday. Banca Akros changed the recommendation to “Buy” from “Accumulate”.
Money is spread across almost the entire price list. It's an exception Telecom Italy (-0,8%). Moderately down stm (-0,2%). The chip industry is under pressure after the downgrade of Samsung by Morgan Stanley. They also drop Dialog Semiconductors e Infineon.
Mediaset +0,5%. This morning Equita adjusted the target price to 3,50 euros from 3,40 euros, confirming the Hold recommendation. The ISS proxy adviser invited his clients to vote against the proposal of the controlling shareholder Fininvest to change the statute and therefore the method of electing the Board of Directors at the next meeting on 15 December.
Among the small caps, Aedes +2,2%. The real estate company has signed a preliminary contract to purchase two tower blocks located in via Richard in Milan, from the Obelisco real estate fund managed by Investire SGR. Netweek (+10%) is one of the main beneficiaries of tax relief for publishing.
