"Sell on news", goes one of the most common sayings of the stock markets. The reaction of the Stock Exchanges to the victory of Emmanuel Macron in the race to the Elysium it was a confirmation of this. In Milan, the Ftse Mib index falls by 0,47%, around 21.400. Profits were also taken in Paris (-0,90%), Frankfurt (-0,27%) and Madrid (-0,4%). The only Stock Exchange showing positive ground is London (+0,08%), despite the growing difficulties for the Brexit negotiations.
The rating agencies applaud the outcome of the elections: Moody's promotes Macron's programme, does not change the opinion of Standard & Poor's.
Meanwhile, investor confidence in the euro zone rose to a decade-high in May. The Sentix index rose to 27,4 points from 23,9 points in April. The consensus expected 25,2 points.
Yields up slightly for the BTP at 10% from 2,20% on Friday. The spread with the Bund widens by 2,16 basis points, to 4, as the yield on the German Bund falls to 179% from 0,40%. The decision by S&P not to touch the Italy rating did not affect it.
Lo spread France/Germany widened by 2 basis points to 44: it was down to a year low on Friday. L'euro it is slightly down against the dollar: cross at 1,095 from 1,099.
The Italians "turn their backs on Piazza Affari". The alarm was raised by Joseph Vegas, president of Consob, on the occasion of the annual meeting with the financial markets. “Today the Stock Exchange has lost its centrality”, said Vegas, explaining that “Italians tend more and more to allocate their savings, as well as funds, to bank or post office current accounts”. And what is happening "is a sign of anxiety about the future," he added.
Between 2007 and 2016, the incidence of bank and postal deposits on total financial assets increased from 38,1% to 46,8%, while the wealth held in shares and public debt securities increased, respectively, from 10,5, 5,3% to 13,4% and 10,8% to 100.000%. Giuseppe Vegas, also added that "the involvement of bondholders should be reconsidered, introducing a safeguard threshold of XNUMX euros".
Note the thud of Tod’s (-8%): the Della Valle family company closed the first quarter with revenues down by 4,4% to 238,5 million (-5% at constant exchange rates), below the expectations of analysts who on average expected 248 million. Kepler Cheuvreux downgraded the recommendation to Reduce da Hold.
The other luxury stocks suffer as a result: Moncler -2,3% Ferragamo -2%. Slight progress for Understanding (+0,2%): Société Générale lowered the recommendation to Hold da Buy, but raised the target price to 2,90 euros from 2,80 euros. Weaker Unicredit (-1%) And Bpm bank (-1,1%). Salt instead B for Bank (+0,3%) in view of a possible strengthening of the alliance with Unipol.
On the industrial front, Prysmian -0,4%: the company obtained an order from the American group Verizon to build a fiber optic network worth 300 million dollars. Leonardo -1,2% Fiat Chrysler -1,3% and StM -1,2%. Classic Ferrari for sale -1,5%, after retouching the previous record high at the start.
Oil in recovery: Brent, which lost 5% last week, rises by 0,2% to 49,20 dollars a barrel. Flat Eni, Saipem -1,3% Tenaris -2%.
