Piazza Affari resists the Def, confidently awaiting the incoming news on Brexit and the ECB's monetary policy. In the middle of the day the Stock Exchange of Milano travels up by 0,3%, in line with the other main European lists: Frankfurt (0,4%), Paris (+ 0,4%) and Madrid (+0,3%). Outside the Eurozone, London salt of 0,1%.
BREXIT: A LONG BUT FLEXIBLE POSTPONEMENT COMING SOON
The eyes of the markets are focused on Brussels and Frankfurt. In the evening, the European Council will have to decide whether to grant Great Britain a further postponement of the final date for leaving the EU (currently set for 12 April) or condemn it to a no-deal Brexit. It now seems certain that European leaders will choose the path of a long but flexible postponement: "The European Council - reads the draft conclusions of the extraordinary summit - agrees on an extension to allow the agreement to be ratified", but "if the will be ratified before the date" established, the separation "will take place on the first day of the following month".
ECB: SPOTLIGHT ON TLTRO AND RECESSION RISK
The other front to monitor is that of the ECB. From Frankfurt the market is waiting details on the implementation of the new Tltro loan program, but the attention will focus above all on the tones chosen by Mario Draghi. In light of the latest disappointing macro data (especially the PMI manufacturing indices of Germany, France and Italy) and the low level of inflation, investors are wondering whether the President of the Central Bank will continue or not to define the risk of a recession in Europe as “low”..
THE ITALIAN INDUSTRY CONTINUES THE MINI-RECOVERY
Meanwhile, moderately encouraging numbers on Italian industry are arriving from Istat. In February, production recorded the second positive cyclical variation after four consecutive months of declines which had marked the end of last year. The seasonally adjusted index increased by 0,8% compared to January (+0,9% corrected for calendar effects). The increase is larger if only manufacturing activities are considered (+1,3%). Cars are still very bad: -10% year on year in February, -13,8% in the first two months.
SPREAD AND AUCTION BOT
On the bond side, the BTp/Bund spread fell to 255 basis points (from 258 on Tuesday evening), the day after the presentation of the Def, which paints a picture of growth stopped at +0,2% for Italy, with debt at 132,8% of GDP. The yield on the 2,55-year benchmark BTP also fell, standing at 2,58%, from XNUMX% at the previous closing.
In the morning, the Treasury placed €6 billion in annual BoT auctions. The bonds mature on April 14, 2020 and offer a yield of 0,07%, up by one basis point from the last placement of the same type. Good demand, equal to 9,559 billion, for a coverage ratio of 1,59.
ACTIONS IN THE MARKET PLACE
On the Milanese stock, the best title is that of Saipem (+2%), with Capital Research holding 5% of the capital. They follow Tenaris (+ 1,3%) and stm (+ 1,3%).
Positive too Juventus (+0,5%), pending the tonight's match against Ajax for the quarter-finals of the Champions League.
Takes benefit on instead Azimuth (-0,8%) after i good data from the March harvest and the stock's rally in the first quarter.
In no particular order the banks: Unicredit e Understanding float around parity, while Ubi earn 0,9%.
After a weak start, the utilities are fine: Enel + 0,5% Eni +0,6%. At the end of the list Unipol (-1,1%) And Amplifon (-1,6%).
EURO AND OIL
On the foreign exchange front, theeuro it is broadly stable at 1,1268 dollars and 125,24 yen.
Il Petroleum instead it goes up: Wti at 64,14 dollars (+0,25%) and Brent at 70,67 dollars (+0,08%). sdpriority30
