The appointment of Giuseppe Conte to form the new government pushes public debt securities to unthinkable, science fiction levels. The prime minister in charge said that his will be a government in the name of novelty: “We must get to work to counter the increase in VAT and offer growth prospects.
The spread against the Bunds it drops to 162 points from 174 on the eve already clearly recovering from the 200 level of last week. The yield of the BTP falls to 0,93%, a new all-time record.
The Treasury also records an absolute record, placing 4 billion euros of 0,96-year bonds at XNUMX% at auction: for the first time in history the psychological threshold of 1% is dropped, with a change of sixty basis points less than the last auction. Also placed 5-year BTPs worth 2,25 billion euro with a yield of 0,32% (against 0,8% in the previous operation) and Ccteu for 1 billion at 0,77% (against 1,06% of July)
The trend is not limited to Italy. The Bund weakens to -0,68% of yield (+3 basis points). In Germany, according to the preliminary data released this morning, inflation is once again curbing. The definitive figure will be published at 14 pm. In the US, the 1,9-year level slips to XNUMX%: Treasury Minister Stephen Mnuchin does not rule out the forthcoming issue of a secular bond.
The Milan Stock Exchange accelerates: the index rises by 2,1% above 21.400. The other European stock markets also rose, following the latest trade war news. China's Commerce Ministry said both sides "should create the conditions" for negotiations to progress, and that China opposes an escalation of the trade war and wants to reach a solution calmly.
Paris rises by 1,2%, where Bouygues shines +4,9% after the accounts. Increase of more than 1% also in Frankfurt. The unemployment rate seasonally adjusted in Germany in August it was 5%, unchanged from the figure recorded in July., Madrid +0,97%.
London Salt +1,08%. The petition against Boris Johnson's decision to postpone the opening of Parliament it collected 1,3 million signatures in few hours.
Eurozone economic sentiment improved in August, rising above forecasts. The index that measures the expectations of consumers and businesses with respect to the performance of the economy this month stood at 103,1 from 102,7 recorded in July.
Safe-haven assets are deflating. Gold nearly wiped out gains priced at 1.540 dollars an ounce, this morning it briefly touched 1.550 dollars. WTI oil trades at 55,9 dollars a barrel, +0,3%: Tenaris +0,2%, Saipem +1%, Eni +1,5%.
At Piazza Affari some industrial blue chips take flight on the wave of brokers' opinions: Goldman Sachs raises its judgment on Prysmian +3% to Buy. Leonardo +2% after the promotion of Morgan Stanley. Cnh Industrial accelerates +4%.
The upside also Tim +3,5%. The decline in the spread helps the banks, Unicredit +3%, Intesa Sanpaolo +2,4%. Ubi Banca +2,2%. Fly Mps +7%.
Falling rates are also supporting utilities. Hera +1,7%, Enel +1,3%. In asset management, Azimut +2,5%. The luxury is weaker: Brunello Cucinelli +1%, Salvatore Ferragamo +0,4%,
Mediaset -0,49%. The decision of the judge of the Court of Milan is expected today on the urgent appeal presented by Vivendi to exercise his right to vote at next Wednesday's meeting.
