Business Square nearly 19 points (18.971) and rising by 2,42%, at the end of a euphoric session on all European markets, driven by Frankfurt +3,7%, closed yesterday for holidays. Paris +2,02%; Madrid +2,56%; London + 0,89%. Wall Street queues at the opening, to then spread out and at this moment the Nasdaq it trades in the red, with the Faangs slightly lower. The Indices DJ e S & P 500 they hit new three-month highs at the start.
The single currency is confirmed in progress on dollar with the cross around 1,117, while Donald Trump threatens to have the army intervene to put an end to the unrest after the death of the African American George Floyd following a police intervention.
The global driving force is the Petroleum, in view of the OPEC+ meeting with the expected decisions on the extension of the cuts. Brent rose by 2,5% to 39,30 dollars a barrel, while WTI exceeded the threshold of 36 dollars a barrel.
But the siren that more than any other enchants the price lists of the euro area is that of the ECB. The board meets on Thursday and expectations are concentrated on that appointment which, at this point, will hopefully not be disappointed. In particular, an extension of the pandemic emergency purchase program (PEPP) is estimated, probably until mid-2021 and an increase in the asset purchase program (APP), with fallen angels downgraded to junk due to the crisis induced by Covid 19. Eurotower should also provide information on how it will want to reinvest Pepp shares. The intervention of the ECB, together with the steps of the EU, should serve to stem the enormous economic damage from Covid, for example France in 2020 will have a collapse of 11%, according to Finance Minister Bruno Le Maire. Today Steven Maijoor, president of ESMA, said the body has intensified contacts with rating agencies to avoid exacerbating the coronavirus crisis with rapid downgrades of countries and companies at a time when the pandemic is pushing economies towards the recession.
Still on the subject of central banks, the Chinese deputy governor Pan Gongsheng argues that even in the Celestial Empire the economic damage inflicted by the coronavirus is greater than initially expected and therefore further monetary and credit policy support measures are needed.
Returning to Milan, Piazza Affari, on the feast day of 2 June, with the banks closed, managed to hit an excellent session, looking at the end of the lockdown and the resumption of free movement between the regions starting tomorrow, while the appeal to the unity of the head of state and the invitation to rediscover the constituent spirit necessary for the restart.
Among the best titles of the day there is Eni +5,17%, which celebrates the rise in crude oil but also the possible organizational restructuring. According to Il Sole24Ore, the six-legged dog is apparently creating two macro management areas dedicated to its main business activities: one management for the Oil sector (upstream and midstream) and one for energy transitions towards renewable energies.
The pink jersey belongs to Unipol +5,92%, while the recent rally of Leonardo +4,36% and Cnh +3,72%. Well Buzzi + 4,24%.
The banks are confirmed as protagonists of this happy phase of the list with Understanding +2,85%; Ubi +3,11%. In progress Mediobanca +2,16, after yesterday's leap. Even better Generali +3,03%, of which Mediobanca holds 13% of the share capital. The press news that Francesco Gaetano Caltagirone could rise to 20-8% of Trieste's Leone is inserted into the great maneuvers of Del Vecchio, who should rise to 10% of the bank's capital.
The only title in red is Diasorin -1,43%, the diagnostic company that flew high in the most critical phase of the epidemic and on which investors are now readjusting their shot.
Outside the main basket they are pawing Interpump, +4,95% and Inwit +2,86%, which tomorrow could be promoted in the Ftse Mib starting from 22 June.
The bounce fails Catholic -0,23%, after the crash on the eve.
Sitting with little movement on the secondary, thanks to the festivities. The spread between Italian and German ten-year bonds, it rises to 192 basis points (+0,56%), with a BTP rate of 1,51%.
On the primary side, the Treasury has entrusted a pool of banks made up of Bnp Paribas, Citigroup, Hsbc France, Mps Capital Services, NatWest and UniCredit with the mandate for the syndicated placement of a new 10-year benchmark BTP maturing on 01/12/2030. The transaction, reads a note, will be carried out in the near future, in relation to market conditions
The transaction is “consistent with what is contemplated in the recent update of the 2020 Public Debt Management Guidelines, which provide for the possibility of resorting to the placement syndicate for the issue of securities with a maturity of less than or equal to 10 years. The issuance of the new 7-year BTP scheduled for the second quarter - concludes the Treasury - is postponed to the third quarter of 2020 to take account of the announced operation".
Meanwhile, Bank of Italy announces that, in 2019, foreign investors returned to forcefully buy Italian government bonds, marking the highest level in the last decade.
