Europe is taking steps forward and the markets seem to believe it. Piazza Affari closed up 1,13% (17.439 points) e the spread drops to 231 basis points (-5,24%), while the Italian 1,78-year yield falls to 10%. A trend that bodes well, on the day of judgment on Italy by Moody's, which fortunately then confirmed the rating with closed markets. In the meantime, however, the markets have cashed in on the agreement reached with the Eurogroup for the long-awaited Mes: according to European sources reported by the agencies, a line of credit will be opened for health care expenses but with a broad interpretation, a loan maturity of XNUMX years and a very low interest rate, just over 0,1% per annum. The credit line can be used for health care costs up to 2% of GDP. The bottom "It will be fully operational in mid-May," said Eurogroup president Mario Centeno.
A general climate of confidence rewards Frankfurt +1,37%; Paris +1,07%; Madrid +0,76%. London is closed for public holidays. In New York, the main lists are in marked progress, despite the fact that Covid 19 has sunk its claws into the job market and left a deep mark. In April, the United States recorded an unemployment rate that had never been seen before: 14,7% from 4,4% in March, with the loss of more than 20,5 million jobs. Forecasts were even worse, and President Donald Trump promises that "those jobs will come back, and they will soon." Investors have in fact focused on the possible recovery, also thanks to an easing of tensions between the United States and China and the re-emergence of the dialogue on tariffs, suspended due to the pandemic.
A statement issued by Beijing revealed that Vice Premier Liu He, who had led the negotiations on behalf of China, telephoned the US trade representative, Robert Lighthizer and Treasury Secretary Steven Mnuchin and "both sides agreed stated that they should strengthen macroeconomic and public health cooperation, striving to create a favorable atmosphere and conditions for the implementation of the China-US Phase One Economic Trade Agreement, promoting positive achievements." This determined good intonation of the markets since the morning and favored oil: Brent +2,6% to 30,23 dollars a barrel. The data on unemployment is weighing on the dollar instead. The euro appreciates slightly and trades at 1,087.
Europe is also making progress on other fronts: the EU Court of Justice, commenting the judgment of the German Constitutional Court, said he has sole jurisdiction over the actions of EU institutions, while commissioner Paolo Gentiloni said the EU project is at risk if a strong common response is not agreed. On the other hand, the president of the ECB Christine Lagarde has once again called for a "European fiscal response" to the pandemic to "promote the recovery as a Union". Messages interpreted as a stimulus to open the wallets of states and which let Italy and its government bonds breathe, pending the new verdicts on the debt.
These aspects, together with the quarterly results, had an impact on the stock performance of Piazza Affari, in particular on the banks, which, after a contrasting phase, archived a matching session. At the top of the list is Banco Bpm, +5,03%, which presented quarterly results better than expected: net profit of 151,64 million euros, -2,4% compared to the first three months of last year. For CEO Giuseppe Castagna, this quarter will be the worst of 2020 due to the epidemic caused by the coronavirus, even if it is still too early to make forecasts and the objectives of the 2020-2023 strategic plan, announced at the beginning of March, are not they are more current. According to the Equita broker, “the profit was above expectations thanks to non-cash one-off components, but the volatility in the quarter's performance increases”.
Ubi also did well, +1,27%, which saw a net profit boom, +12% to 93,6 million, despite being rooted in the territories most affected by the Covid 19 epidemic. Less tensions with China and the recovery of traffic with Phase 2 they favor, among others, Atlantia +4,81%; Prysmian, +4,16%; CNH +4,05%. Leonardo did well, +1,84%, after the results for the quarter below expectations in terms of revenues and Ebita, but with an order collection beyond market expectations. Sales penalize only three blue chips: Moncler -1,53%; Pirelli -0,84%; Amplifon -0,4%.
