The slowdown of the pandemic and the possible end of the lockdown give wings to oil and support the stock exchanges, on a nervous day in Europe for the sentence of the German Constitutional Court which partially calls into question the actions of the ECB.
Piazza Affari has in any case managed to keep up with the other continental price lists ea closed up 2,06% at 17.387 basis points, even if the spread rose to 242 country points (+4,84%) and the Italian 1,84-year yield rose to XNUMX%.
Frankfurt +2,52%, Paris +2,4%, more cautious Madrid +1,09% rebounded. Well London +1,7%. Wall Street opened in tune and is making progress, focusing on the reduction of containment measures and on signs of peace with China regarding the origin of the coronavirus. The Stars and Stripes Stock Exchange does not seem to suffer especially the worrying macro data: US economic activity hit new all-time lows in April due to heavy production disruptions related to Covid.
The IHS Markit composite PMI — which covers the manufacturing and services sectors — came in at 27,0 last month. The detection is at its lowest since the beginning of the series at the end of 2009 and follows a preliminary reading of 27,4 for April and a final reading for March at 40,9. Data below the 50 threshold indicates a contraction in activity.
To give propellant to the price lists is above all oil, which focuses on the restart of the industry and on the resumption of flight scheduling by various companies. Texan crude climbed 18,8% to $24,25 a barrel; Brent appreciates by 11,8% to 30,41 dollars a barrel.
On the currency market the euro retreats against the dollar, with the change at 1,084. The single currency swerves, as does the Italian bond, at the judgment of the German Constitutional Court on the government bond purchase program by the European Central Bank. Not a rejection, but not a promotion either. Something in between, which leaves room for politics and different scenarios.
At a first reading, the sentence confirms the compatibility of the Qe with German federal laws, but sets limits to the participation of the Bundesbank, to overcome which the ECB has three months time to demonstrate that the monetary policy objectives pursued by the program are not disproportionate to the fiscal and economic policy effects resulting from the programme. The president of the Bundesbank, Jens Weidmann, intervened to reassure the markets, saying that he will support the efforts of the European Central Bank in this work.
The surge in the spread does not weigh too much on the Italian banking sector: Entente flies +5,45% after quarterly accounts, closed a growing net profit above expectations, despite a provision of around 300 million in the face of the Covid emergency. Mediobanca -0,88% and Bper -0,18% suffer. Sales mainly affect Atlantia -3,16%; Leonardo -1,9%; Buzzi -1,39%.
The pink jersey goes to Prysmian, +8,36%, which was awarded a contract for the construction of the SuedOstLink project in Germany, one of the longest HVDC (High Voltage Direct Current) underground cable connections in the world, awarded by TenneT TSO GmbH, the operator of German-Dutch network. The value of the contract is equal to 500 million euros.
Oil stocks are strong, also in the wake of the quarterly report by Total, which confirmed the dividend: Eni +5,8%; Tenaris +4,8%. Out of the main basket good Maire Tecnimont (+4,29%), leading a consortium that won a 1,2 billion petrochemical contract in Russia.
