Declining spreads and growing stock market: the last session of the week ends on a high note, the best in two months for European stock exchanges. Wall Street is also traveling in tune and could archive the best eighth of 2019, with the Dow Jones which, at least momentarily, climbs back to 26 points and Microsoft which is number one, exceeding a trillion dollars in capitalization. US euphoria is fueled by the prospect of a possible rate cut by the Fed, after the May job data: 75 jobs created against 180 expected. A slowdown that reinforces the hypotheses of a correction in the cost of money, but which weighs on the dollar, with the euro rising to around 1,134.
Piazza Affari rises by 0,91% and reaches 20.360 points, below the highs of the day, but in line with Frankfurt +0,74%; Madrid +0,73%; London +1,02%. The queen square is Paris, +1,62%, led by Sanofi (+4,4%) following the indication of the new CEO, Paul Hudson, coming from Novartis. Renault recovers, +2,07%, after yesterday's crash due to nothing done with Fiat (-0,39 in Milan) for a merger that would have given birth to the third world group in the automotive sector.
The day is positive for the Italian secondary: the yield of the 10-year BTP drops to 2,37% and the spread with the Bund cools down to 262.10 basis points (-4,59%). In the session, the differential with the German benchmark had even dropped below 260, but the debate on minibots, rejected yesterday without appeal by Mario Draghi, perhaps created some concern about the government's real vision of Italy's perspective in Europe.
“All new solutions are contested – claims the Northern League undersecretary to the Prime Minister Giancarlo Giorgetti talking about minibots – I'm not saying they are the Bible, but they are a proposal to speed up payments, one of the possibilities, one of the solutions, but the main road is that of growth”. Meanwhile, Bank of Italy halves its estimates of the tricolre GDP for 2019: +0,3%. A little better in 2020, +0,7% and 2021 +0,9%.
Banks cooled during the session, despite the good performance of government bonds. Benino Unicredit +0,48%, more tonic Monte Paschi +1,49%, slightly negative Banco Bpm -0,24%. The raw materials shine: crude oil, Brent, climbs 1,69% to 62,71 dollars a barrel; gold moves around 1343 dollars an ounce.
The best blue chip in Piazza Affari is Saipem, +3,18%, which celebrates the recovery of black gold and again the six billion contract in Mozambique. Ferragmo +2,8% and Prysmian +3,01% remain in evidence, while all coaches keep attention high on Juventus (+2,84%), despite Pep Guardiola saying that there is no better place for him that Manchester City.
Down were Banca Generali -0,61% and Buzzi -0,63%. Out of the main list Mediaset scores an increase of 3,02%, due to the hypothesis of a corporate reorganization involving the Spanish subsidiary (but the possibility of a takeover bid has been denied) and the possible transfer of the headquarters of the parent company to Spain.
