Covid and terrorism leave no way out today for European lists, which almost all closed negatively while stemming the losses in the late afternoon driven by the moderately optimistic tone of Wall Street.
Piazza Affari loses 1,1%, weighted down by the banks, even if Banco Bpm continues to make clear progress. Male Frankfurt -1,17%, Paris -0,69%, Madrid -0,17%. London, +0,34%, goes against the trend.
What is still frightening is the growth of infections in countries such as France and Spain and the consequent restrictive measures, which inevitably curb the economy. The EU health commissioner, Stella Kyriakides, says that the moment "is decisive" and invites states "to implement control measures at the first sign of potential outbreaks" because "it could be the last hope of preventing the situation from returning of April.
An attack with white weapons in Paris, in the area where the Charlie Hebdo editorial office was located in 2015, when its members were killed, also contributes to worsening the mood today. Agencies report that two (or four people) were wounded by an 18-year-old Pakistani youth, later captured. And there would also be a second catch.
The start of the US Stock Exchange is uncertain, which after the first trades seems to have found the way to purchases, thanks to the shares of the shipping companies and the recovery of Apple and Tesla. We are also staying tuned to the awaited aid plan, in the hope that it will finally go through. The Democrats have finalized a 2.400 billion project (2.200 according to Reuters) on which a vote should be held next week, but the figure would be higher than what Republicans and the White House are willing to accept.
On the foreign exchange market, the euro-dollar drops to 1,161, with the greenback returning to center stage as a safe haven asset, while gold piles up new fractional losses, -0,3%, 1862,3 dollars an ounce. Oil futures are in the red, Brent -0,5%, 41,7 dollars a barrel.
The main list of Piazza Affari opens and closes with the banks: Banco Bpm is the best stock +2,35%, but Bper is the worst one, -5,28%, although both institutions can participate in the next, possible wave of mergers and acquisitions. Banco Bpm has been on the crest since yesterday, after Bloomberg wrote of a possible interest from Credit Agricole (which would also look at Credito Valtellinese, -0,87%). Other press sources spoke instead of meetings with the top management of Unicredit (-2,3%).
Bper suffers from the approaching capital increase of 800 million, which will begin on 5 October.
Overall, the sector closed the session with a loss, also worried by the warning of the vice president of the European Commission, Valdis Dombrovskis on non-performing loans. “We haven't seen a significant increase in non-performing loans yet, but it's probably only a matter of time before urgent action is needed,” Dombrovskis said. "History shows that it is better to deal with NPLs early and decisively, especially the banking sector must support the economy". The window of opportunity to take preventive action is now: "if we don't act in time, we could see the aftermath of the last financial crisis repeat itself and bad debts weighing on banks' balance sheets for years."
In the rest of the price list, Diasorin rebounds +1,67%. Utilities did well with Terna +1,52% and Snam +0,855. Another crash for Saipem, -3,3%, Pirelli -2,8%, Campari -2,71%, Azimut -2,46% are also in the red.
Outside the main basket, Danieli celebrates in the round what will be proposed to the meeting: the conversion of savings shares into ordinary shares, with a conversion ratio of 0,65 ordinary shares for each savings share; the distribution of a dividend of 1,2 euro for each existing and newly issued ordinary share.
Danieli & C Risparmio gained 16,76% and Danieli & C rose by 10,87%. Spread up to 142 basis points (+2,55%) and the ten-year BTP yield is approaching 0,9% (0,89%).
Meanwhile, in the morning, the Treasury assigned all the 6,5 billion euro of six-monthly Treasury bonds offered at auction with lower rates. The average yield fell to -0,392% from -0,33% in August's placement. Demand exceeded €13 billion with the coverage ratio rising to 2,01 from the previous 1,71. both in consumer confidence (from 101,0 to 103,4) and in business (the composite index rises from 81,4 to 91,1). Demand exceeded €13 billion with the coverage ratio rising to 2,01 from the previous 1,71.
The Italian economic climate improves. According to Istat, consumer confidence in September rose from 101 to 103,4 and that of businesses from 81,4 to 91,1.
