THE BULL ADVANCES ON WALL STREET
AND IN ASIA, A BUSINESS PLACE IS HOLDING THE HOLD WAITING FOR DRAGONS
The wind is blowing up on the financial markets. Taurus advances cautiously on the Asian price lists, all in positive territory. Tokyo rises by 02%, Austria +0,3%. The dollar is sailing at an eight-week high. The American Stock Exchange, closed on Monday for Memorial Day, set a new record with the S&P500 at 1.911 points.
Il Dow Jones up 0,42%, Nasdaq +1,22%. Banks stand out: Bank of America rises by 3,6% after announcing a new business plan. Rises of 1,8% for Apple and Google. Positive signals from the economy: orders for durable goods increased by 0,8% in April, while those in March were revised from 2,9 to 3,6%. Meanwhile, the Case Shiller index signals that house prices continue to rise.
It is in this frame that the European stock exchanges. modestly up, awaiting the measures that the ECB will take on June 5th. Frankfurt + 0,49% consolidated its recent records, the other lists are more cautious: Paris 0,06%, London + 0,43%, Madrid + 0,25%. Settlement session instead in Milan. The FtseMib index fell by 0,4%, a physiological reaction after the jump of +3,6% on Monday.
6-MONTH BOT AUCTION, TOWARDS RECORD YIELDS
On the government bond market, the BTP consolidated Monday's gains yesterday with the yield stable at 2,98%. Spread at 159. In the meantime, the month-end auctions continue. After the placement of Ctz and Btpei (up to the range (up to the 3-4 billion range) the Treasury will offer today 6,5 billion Bt at 6 months and Thursday between 6 and 7,5 billion Btp at 5 and 10 years and Ccteu 2019.
The forecasts for today's auction are positive also because against the new half-yearly securities maturities amounting to 7 billion. The yield on new bonds is expected to fall to 0,52%, down from 0,594% at the end of April, close to March's highs.
DRAGONS ACCELERATE ON THE ABS. BERLIN ALREADY BRAKES
“We need to reflect more on a European project that leads to more growth, work and well-being. From this point of view, we have to improve,” he said yesterday Mario Drghi in the round table that concluded the ECB meeting in Portugal.
The central banker was careful not to reveal his cards before next Tuesday's directorate, but anticipated that a joint ECB and Bank of England document will be released on Friday on the line of action to revitalize the ABS market, with the aim of revitalize credit to small and medium-sized enterprises "which are very close to our hearts because they contribute 80% to employment in the euro area". In anticipation of the central bank's moves, the warning of the German Finance Minister, Wolfgang Schaeuble, arrives promptly. “These are extraordinary times for monetary policy in Europe – he said speaking in Berlin. Extraordinary times should remain and should end shortly. I am afraid there are great risks at the moment,” he added.
MEDIASET SUPERSTAR, GOOD FIAT
Featured in Milan Mediaset +2,5%, best title of the day. Investors are expecting news soon on the Spanish platform and pay TV front: talks between the controlled company Fininvest and Sky on the future of Premium could resume. Berenberg revised the target price upwards from 3,6 to 3,65 euros, confirming the buy rating. Another positive note of the day was the rebound of Fiat +1,1%, on a flat day for the automotive sector. Conversely, the other industrial stocks fell: Pirelli -1,5%, Prysmian -1,4%, Cnh Industrial -1,3%. Finmeccanica -2,2%.
MONTE PASCHI WARMS ITS ENGINES TOWARDS THE INCREASE
Mark time, after Monday's big leap, the banking sector. The exception is Popolare Milano +1,8% after the brilliant conclusion of the 500 million euro capital increase. Banca Monte Paschi closed up 0,7% at 23,59 euros after reaching a maximum of 24,33 euros. The 5 billion capital increase with which the bank will repay 3 of the 4,1 billion Monti bonds could start as early as Monday 9 June. The decreases are contained by Unicredit -0,6%, Intesa -0,8%, Mediobanca -0,5%. Among the insurance companies, Generali -0,6%, UnipolSai -0,1%.
LOW RATE ENERGY AND UTILITIES
In the rest of the price list, the minus signs prevail. Weak energy and utilities. Eni and Enel both lose 0,4%. The drop of A2A -1,54% was heavier after the company expressed its intention to ask the shareholders for the approval of a buy-back plan of up to 10% of the share capital. The shares could be used to accelerate the process of consolidating small local utilities. Banca Akros confirmed the hold rating on the stock and the target price at 1 euro, Banca Imi add and target price at 0,93 euro and Mediobanca Securities neutral and target price at 0,87 euro.
Saipem is also weak - 1,6% despite the news of new contracts for a total value of 750 million dollars.
Telecom Italia down which leaves 1,36% on the ground. Yoox -1,8% and Autogrill -2,2% stand out among the blue chips with the greatest decline. In contrast, real estate stocks, on the wave of interest from large US private companies in state-owned real estate, Aedes and Gabetti gained 11,79% and 7,8% respectively. Among the small companies, Frendy Energy soared by 12%: BCM & Partners, an asset management company entered the capital with a share of approximately 0,5%.
