European stock markets show slight progress pending ECB communications. In Milan, the Ftse Mib index rose by 0,2% around 22.500. Similar trend in the other markets: Frankfurt and Paris both +0,2%. In the red Madrid -0,3% awaiting the new confrontation with Catalonia. Little better outside the Eurozone London +0,3%. Best of all Zurich, up by half a percentage point. Note the collapse of Nokia -13% after a quarter below expectations.
Crude is little moved, in a market where the unexpected increase in inventories in the United States weighs heavily and expectations for a reduction in supply help. Brent is stable at 58,44 dollars a barrel. Eni +0,51% on the day of the board meeting. The data will be communicated tomorrow morning. The Bloomberg consensus forecasts an adjusted EBIT of 1,539 billion euros, a marked increase from the 258 million euros of the same period of 2016, an adjusted net profit of 431 million euros from the loss of 484 million in the third quarter of 2016 and a net debt of to 11,99 billion euro from 16 billion in the same period last year.
Waiting for the verdict of the ECB, the euro moved slightly up against the dollar to 1,1821. The bond market waiting for Draghi was little moved. The Treasury placed all 4,25 billion euros of 10-year BTPs indexed to Eurozone inflation (sixth tranche) and 24-month CTZs (first tranche) offered today at auction. The yield of the indexed BTP maturing in May 2028 (1,25 billion euros allocated) is equal to 0,97%. Demand reached 2,317 billion. The Ctz rate, maturing in May 2019, remains negative at -0,167%. Three billion euros assigned against requests for over 6 billion.
The prime minister, Paolo Gentiloni, should indicate the name of the new governor of Bank of Italy today in a letter to the institute's board of directors, according to a source familiar with the dossier. Ignazio Visco's mandate expires at the end of the month and expectations are for a new assignment even if the Democratic Party has contested the reappointment.
Still positive news for the Italian economy. Consumer confidence in October it grew better than expected, reaching its highest level since February 2016. Business confidence was also better than expected at 111, its peak since March 2007. A series of positive news especially for companies operating on the domestic market.
The star of shines in Piazza Affari Stmicroelectronics +7%. The chip maker has released data for the quarter. Net income was $326 million, a sharp improvement from $71 million a year earlier. The gross margin rose to 39,5%, at the high end of the target provided by the company. 2017 should close with an 18% year-on-year increase in revenues, with a substantial improvement in profitability. Both quarterly figures and forecasts are above analysts' estimates.
Stm, last 18 September, detached the quarterly dividend of 0,06 dollars per share. From the same day it also joined the Cac40, the main index of the Paris Stock Exchange, in place of Nokia.
It picks up speed Monte Paschi +5%, after +11% yesterday, on the day of the return to the Stock Exchange after the long suspension. ?JPMorgan, which caps the stock with "neutral", writes today that a rate hike could give the stock further room to rise, but uncertainty about the ECB's new guidance for NPEs could weigh on its performance.
The rest of the banking sector decreased slightly, in line with the rest of Europe (-0,41%). Weighs the plunge of Barclays -7% after the accounts, on the worst day since the Brexit vote. Deutsche Bank drops 2,2% after a 10% drop in revenues of the third quarter. The bank is undergoing a major restructuring that includes the integration of its retail subsidiary Postbank.
In decline Moncler -1,9%. The Eurazeo fund, a shareholder of the group, announced this morning that it had sold 8,5 million shares, equal to 3,34% of the capital, at 24,48 euros per share, maintaining 5,3%. Il Sole 24Ore -4%. The company has announced the terms of the 50 million euro capital increase: the operation will start on 30 October. The new shares are offered at a price which provides for a discount of 34,8% on the theoretical ex-rights price, on the basis of one for every four old shares held.
