GALLOPING BAGS, FRANKFURT IN THE LEAD
MARKETS SEE AGREEMENT ON GREECE
The European stock exchanges are galloping while expectations of new interventions in support of the banks by the European Central Bank are growing. Furthermore, the conviction is spreading among investors that the European leaders have found an agreement and are preparing to take all the necessary measures to prevent or in any case to steer the bankruptcy of Greece. In Milan, the Ftse Mib index rose by 2,82% to 14.516 points. But the palm of the leading Stock Exchange goes to Frankfurt +3,49%%, closely followed by Paris +3,47%. The euro depreciates slightly against the dollar to 1,351 from last night's close of 1,353.
THE TREASURY PLACES 11,5 BILLION BOTS AND CTZ
BUT THE RETURN IS THE HIGHEST FOR THREE YEARS
Record yields at auctions in Rome and Madrid, while demand for refinancing from the ECB is growing in Frankfurt. The Treasury placed eight billion semi-annual BOTs at a rate of 3,071%, the highest since September 2008. At the same time, 3,5 billion Ctz were allocated with a yield of 4,511%, a record since July 2008, against 3,408% last year August. Investor demand for CTZs, zero coupon Treasury certificates, was more than 1,5 times supply.
The market response was also good to the Spanish offer which auctioned 3,225 billion euros of bonds with 6 and 3 month maturities, with rising yields. The rate on three-month bonds was 1,692% compared to 1,357% in the previous auction and that on six-month bonds rose from 2,187% to 2,665%. Meanwhile, the European Central Bank has allocated 208,349 billion in the weekly refinancing auction (+7,2 billion compared to last week). The transaction was conducted at a fixed rate of 1,5%. The differential between the BTP and the bund is reduced to 365 basis points from 379 yesterday evening (it was 390 on Friday evening), while the bund future falls to 136,5 from 137,3 yesterday, an index of greater risk appetite.
INSURANCE SECURITIES FLY
HOT AFTERNOON FOR BPM
In great evidence, on the share lists, the insurance securities. The Stoxx sector index rose by 4,1%, ahead of the automotive industry (Stoxx +3,1%), banks (Stoxx +2,9%) and raw materials (Stoxx +3%). In Italy, Generali +3,5%, Fondiaria Sai +4,4%, Mediolanum +2,8% rose. In the basket of the top 50 companies, the Stoxx 50 index, Bnp Paribas +7%, Allianz +5% and Axa +5% stand out. Not even a European blue chip is down.
All banks are on the rise: Intesa +4,85%, Unicredit +2,91. Even more euphoric Ubi +5,32%. Field day and perhaps decisive for Banca Popolare di Milano, which rises by 3,2%. Today, barring surprises, which are always possible in Piazza Meda, there will be the definitive choice on the governance of the institution, a crucial step that could be accompanied by a change at the top (Massimo Ponzellini's exit as president) and a new ownership structure (transition to the spa is not excluded).
MADRID'S MONEY PUSHES ENEL
YOOX OPENS A SITE FOR CHINESE SHOPPING
Eni is up 2,3%, the same gain for Wti-type oil futures (+2,3% to 82,2 dollars a barrel). The company has started the reopening of fifteen wells in Libya's Abu-Attifeel field. Iraqi Prime Minister Nuri al-Maliki and Eni CEO Paolo Scaroni met yesterday in Baghdad to discuss the development of the "super giant" Zubair field in the center of the country. Saipem rises by 2,2%. Utilities are up, in particular Enel+ 4,30% The Spanish government has restarted the money collection operations that will lead to the reimbursement of the utilities, Endesa will receive 780 million euros. Terna +2,9%, A2A +2%.
Fiat is up 1,6% and Fiat Industrial is up 0,3%, a weaker performance than the European automotive companies. Pirelli runs faster +3,5%. Stm is up 2,7%, despite the first warnings about the third quarter in the semiconductor sector. Tonight Freescale announced a cut in its third quarter sales estimates from 0/-3% to -6/-8%. The warning is essentially linked to the weak sales trend in the consumer and industrial sector. Negative impact for all semiconductor manufacturers exposed to those segments, including Stm.
Buzzi advances by 2,7%, Prysmian reacts to the fall in the price of copper and advances by 2%. Yoox has announced that thecorner.com.cn website has been active since yesterday. The site will present a selection of "corners" by important luxury brands and designers dedicated to the Chinese market. Rcs +4,4% stands out in the Midex. A package equal to 1.16% of the Rcs capital will be placed on the Stock Exchange at a premium price of 1,16 euros compared to current stock market prices. This package derives from the non-acceptance of the shareholders in the option offer deriving from the merger of the subsidiaries with the parent company. In case of lack of interest, the package will be purchased by RCS itself.
