POLITICS SHAKE MILAN -3% AND MADRID -2,1%
MPS AND UNICREDIT UNDER FIRE, AND THE SPREAD RISES UP
Politics shakes the stock exchanges. Silvio Berlusconi's recovery in the polls is frightening, on the wave of slogans (return of the Imu, grave amnesty, re-discussion of the euro) that send shivers down the spine of financial market operators. The prospect of a government crisis in Spain, where the primacy of Mariano Rajoy is faltering, which would open a political crisis of more than uncertain outlines, is frightening.
The result? Back to climb it spread at 278 (+14 basis points). The yield of Btp to 10 years rose to 4,44%. The 10-year bond is traded at a yield of 5,37%, spread with the Bund at 371 (+21 basis points). Portugal's spread also rose by 23 basis points.
THEeuro it was down against all other major currencies: against the dollar it traded at 1,355 from 1,364 on Friday, with the Swiss franc at 1,2349 from 1,238.
Black day for the Milan Stock Exchange with the index FtseMib which loses 4,5% and widespread declines among all blue chips, with the exception of Saipem +1,7%.
Also the other European Stock Exchanges accentuated the decline. London loses 1,2%, Paris -1,5% and Frankfurt -1,7%. The Madrid Stock Exchange loses 2,1
The heaviest losses are from the banks: the decline of Unicredit vhe lost 4,9%, after UBS downgraded its buy rating to neutral. A similar loss also for MontePaschi - 4,9%, in the eye of the storm of judicial investigations and the political duel.
The other banks were also negative: Intesa fell by 3,8%, BancoPopolare -4,7%.
In Business Square marks a sharp decline Generali -2,7% to 13,62 euros: Barclays has set a target price of 12,5 euros with an equal weight recommendation. Among other insurance companies, Unipol fell by 4,5%.
Industrial stocks are also down sharply in Milan: Fiat Industrial drops by 3,2%: Deutsche Bank has lowered the judgment to hold from buy.
Fiat loses 5%, Pirelli -3% Finmeccanica -5,2%.
But the list of titles in red is long: Eni retreats 1,4%, Enel -2,6%, also down Telecom Italy -2,4%.
Enel Green Power – 3,3%, after being downgraded by Santander which lowered the rating to hold from buy, target price at 1,65 euros.
Among the mid caps the collapse of Seat -20%, after the declaration last week of a new default on some bonds. Brembo loses 5%.
