DRAGHI TURN ON THE RECOVERY OF THE BAGS
MILAN +3,4%, THE SPREAD IS NARROWING
Some hawks will have turned up their noses. Mario Draghi, however, immediately marked his season at the ECB with a courageous, sensible gesture that certainly appealed to the financial market. Indeed, the ECB cut the reference rate of the euro by 25 basis points, bringing it to 1,25%, prompting an immediate reaction from the European stock markets, already at the mercy of the ups and downs of news arriving from Greece. Milan runs upwards, the Ftse-Mib index gains 3,29% to 15.775. Frankfurt and Paris also did well +2,3%, Madrid +2%. London +0,7%. Wall Street also rose, albeit fractionally, after the Fed's decision to keep interest rates unchanged: the Dow Jones index rose by 0,4%, the S&P rose by 0,2%, the Nasdaq remained unchanged. Weekly claims for unemployment benefits fell to 379 from 402 the previous week and against expectations for 400. The preliminary data on non-agricultural productivity in October also did well, rising by 3,1%, slightly above the estimates at +2% and strongly recovering compared to the 0,7% drop in the previous quarter. Conversely, in October the ISM index of services fell to 52,9, settling at a lower level than economists' expectations, which indicated 53,5.
The euro has recovered from this morning's lows and is now par with last night's close at 1,374 against the dollar. Oil rose 0,5% to 93 dollars a barrel. Finally, the spotlights are on the G20, underway in Cannes, and on developments in the debt crisis in the euro area, while in Greece the risk of a referendum, or the prospect of a disorderly default, with heavy effects on the entire stability of the single currency is receding . Add to this the euphoric reaction of the stock markets to the news that the Bank of England (Boe) has distanced itself on the new capital requirements. Meanwhile, the Big ones have taken note of the message from Silvio Berlusconi who assured that, using the weapon of trust, in 10-15 days all the measures contained in the stability decree and in the maxi-amendment will be determined and defined. The calming of the Athenian horizon, where the exponents of the majority and of the opposition repeat that Greece will remain in the euro and there is no alternative to EU aid, is also good for our BTPs: the yield falls to 6,12% (-6 basis points) and the spread with the Bund narrowed to 424 basis points.
BANKS IN RECOVERY (EXCEPT BPM)
TENARIS +14% SURPRISES THE PRICE LISTS
In Piazza Affari the banks raised their heads after the great fear: Unicredit +4,58%, Ubi +5,22%, Intesa +3,68%, MontePaschi +2,4%, Banco Popolare +2%. In great dust the Bper which flies up by 7,4%. Insurance companies were also positive: Generali +1,68%, Fondiaria-Sai +4,45%. The negative exception, as usual, is the BPM -2,3% whose shares, at 0,3900, are dangerously close to the offer price of the newly issued securities (0,30). Exceptional run by Tenaris which flies after the above-expected results: the stock marks a rise of 14%. Eni climbs 2,68% after positive news on the early restart of production in Libya. StM advances by 7,30%. Great sprint also for Fiat +5,5% which had opened the day down by 2,4%; Fiat Industrial +6,5%, Pirelli +3,5%. Finmeccanica runs upwards +9% which recovers yesterday's fall. The subsidiary Ansaldo rises by 1% Enel +3,8%, Telecom Italia +2.08%.
