Draghi's words cut the spread: the differential between Italian and German government bonds, which had already reached its lowest level since May in the morning, falling below 400, after the words of the president of the ECB it reached 383 basis points. The ECB also left interest rates at 0,75%. The marginal rate at 1,5% and that on deposits at zero also remained unchanged. Even the Boe confirmed the current cost of borrowing at 0,50% and left the size of the bond purchase program decided in recent months to support the economy unchanged at 375 billion pounds. The Stock Exchanges confirmed the increases even after Draghi's press conference which announced an unlimited purchase program of sovereign bonds over 1-3 years. Milan rose by 3,5%, Frankfurt by 2,73%, London by 1,67% and Paris by 2,74%. In the afternoon, the euro retraced slightly against the dollar at 1,2591.
The differential between the BTP and the Bund was already down in the morning at around 393 basis points after reaching 10 basis points around 387 am, at its lowest since May and for the first time since then below 400 basis points. The Bono bund spread is down at 455 points. Meanwhile, this morning Spain, while Rajoy sees Chancellor Merkel on the aid plan, has placed 3,5 billion of Bonos which he had set himself at yields almost halved. The 2-year bonds, maturing in April 2014, recorded a yield of 2,798% versus 4,706% last June, with demand double the supply. Bonos maturing in June 2015 achieved an average yield of 3,676% from 5,086%, with a bid to cover ratio of 1,8 times.
France also benefits from the easing of tensions, which has placed 10-year bonds (April 2022) for 3 billion euros with rates at 2,21% from 2,53%, the lowest since 1999.
Piazza Affari runs thanks to the sprint of the bankers who benefit from the descent of the spread. Mediobanca rises by 6,8%, in the aftermath of the board of directors on the Ligresti papello signed by Nagel. Ubi Banca rises by 8,16%%, Unicredit +8%, Mps +7,43% and Bpm by 6,29%% after Citigroup raised its estimates on the stock to "take into account recent results and the latest trends industrial. Generali also did well (+1,83%) on expectations for changes in the shareholder base. Today the company announced that it has revised the agreements for the sale of the 69% stake in the Israeli Migdal, to be finalized by October, with a price that has fallen to 705 million from the previous 835 million.
Impregilo also stands out on the Ftse Mib (+6%) thanks to the promotion by Intermonte to outperform from neutral
At the bottom of the index falls Luxottica -4,83%, which reduces the declines compared to the morning Del Vecchio announced yesterday evening that he had started the sale, through Delfin, of up to a maximum of 33 million shares of the eyewear group, equal approximately 7% of the share capital, through an accelerated bookbuilt offering reserved for institutional investors. This morning Delfin completed the sale of 3,8% of the share capital for 486 million euros and 18 million shares.
