Festive markets after the unexpected agreement on migrants reached by the European Council meeting in Brussels. In the last session of the second quarter of 2018, stocks and bonds toast the agreement announced overnight by President Donald Tusk, while on the currency front the'EUR it strengthened against the dollar, well exceeding 1,16 (1,1643 the current exchange rate between the single currency and the greenback).
SPRINT OF THE EUROPEAN STOCK EXCHANGES
Business Square in the morning he runs fastest of all, on the strength of an Italian success which, albeit leaving many questions open, dampens the tensions of recent weeks that had led to heated clashes with other Eurozone countries over migratory flows. In the middle of the day, the pace slowed down a bit with the Ftse Mib gaining 0,9% to 21.624 points.
The same trend also for the other European price lists: Paris + 1,1% Athens + 1% Madrid +0,8%. It goes up 1% too Frankfurt driven by the renewed hopes on the longevity of the German Government thanks to the news on secondary movements decided by the EU Council and by the good signals received on unemployment, which remained stable in June at 5,2 per cent. Outside the Eurozone they travel in positive territory too London (+ 0,7%) and Zurich (+ 1,2%).
INFLATION GOOD, THE OIL RALLY CONTINUES
The June estimates on'inflation of the Eurozone, at its highest level since February 2017, reaching the symbolic ceiling of 2% - the ECB's target - thanks to the recent surge in oil prices. On a monthly basis, the increase is 0,1% from 1,9% in May. The core figure, excluding the prices of energy, food, alcohol and tobacco, instead shows an improvement of 1 percent.
Remaining on raw materials, the rally in Brent continued, reaching 79,15 dollars a barrel (+1,4%). The quotations of the Petroleum are now one step away from reaching the longest quarterly rally of the last 8 years, with 4 consecutive quarters of growth. The WTI moved little, at 73,47 dollars a barrel.
SPREAD DOWN, NEWS FROM ECB
The European party that began thanks to the EU Council's agreement on migrants is also infecting the bond market and affecting the yields of Italian government bonds: the rate on the ten-year BTP drops to 2,7% (-3,8%), while the spread drops to 239 basis points.
According to Reuters, the European Central Bank is considering reinvest maturing securities starting from 2019, focusing above all on long-term securities. Eurotower is also allegedly evaluating the possibility of deviating, even if to a minimal extent, from the criterion of capital shares. As Mps Capital Services points out, the news reported by the British press agency produced sales on euro area securities short-term (particularly on the German two-year). The exception though, is the BTP at two years which has a much higher rate than other securities of the same maturity.
BANKS AND FCA RUN IN MILAN, MEDIASET COLLAPSES
Tornado in the stock market, the financial sector tonic, with the Ftse Italia Banks up by 1,47%. The big names of the Ftse Mib are largely positive: Where's Banca, pink jersey, 3,5% salt, Bpm bank of 2,7%. Intesa Sanpaolo earn 1,67%, Unicredit 1,48%.
Toned the Agnelli galaxy. After the sales of the last sessions fca in fifth place, rising by 3,17% at mid-day driven by the rebound in the European auto sector and rumors published by the Asia Times newspaper, according to which the CEO of Hyundai Motor, Chung Mong-koo, would be waiting for a drop in share prices before launching an offer on the Italian-American group. Citing sources close to the dossier, the newspaper reports that the offer will be launched in the period between this summer and before the May 2019 meeting, when Marchionne will formally leave the FCA leadership. Hyundai denies, but attention remains on the title. It also runs in slipstream Exor (+3,1%), good Ferrari (+ 0,7%) and Cnh (+ 0,9%).
Among the best titles of the main list there is also Prysmian (+2,7%) which rears its head after the declines of the last sessions due to the additional costs of the Westernlink cable and to the details on the next capital increase. It bounces stm (+ 2,8%).
From the best to the worst: it collapses Mediaset (-3,3%). The Alfa Romeo pays the over 47% downgrade decided by Morgan Stanley, which cut the rating on the stock to underweight from the previous equal-weight, bringing the target price to 2 from 3,80 euros. The broker announced a negative view on the entire European sector due to the shift of advertising investments to non-TV platforms, a structural phenomenon that is already manifesting itself overseas. The penetration of Netflix and Amazon, also in the old continent, will keep advertising revenues substantially stable, with a consequent collapse of about 40% of the EPS of the European network TV networks in the next five years. Down too Telecom Italy (-0,38%) And Salvatore Ferragamo (-0,34%).
