They close the week on highs Asian bags. The partial exception is Tokyo -0,2%, slightly retreating after a series of six consecutive upward sessions. Inflation is on the rise again in the Rising Sun: +3,2%, the highest figure since 1991. The script of the last few days hasn't changed on Wall Street: the 2,466-year US T bond is sailing at its lowest level since June (0,39%) pending of expansionary measures by the ECB. And low yields support equities and high yield bonds. The American stock markets thus closed up: the Dow Jones index rose by 0,54%, the Nasdaq by 500%. The S&P 0,5 +1920% marks a new record at XNUMX.
The review did not weigh on the market drop in first quarter GDP, down 1%, well beyond forecasts which indicated a decrease of 0,5%, mainly due to the severe bad weather this winter. Wall Street gave more weight to the positive data: the increase in consumption (+3,1% in the quarter) and the drop beyond forecasts in applications for unemployment benefits (300 from 326). The rise of Twitter continues: + 2% after the +10,7% recorded on Wednesday in the wake of the promotions of Nomura and Cantor Fitzgerald. On the consumption front, the excellent quarterly results of Abercrombie & Fitch (+5%) should be noted.
Almost flat day in Europe, thanks to the public holiday in Germany and Luxembourg, closed for the Ascension holiday: Paris -0,02%, London rose by 0,2% at par with Madrid. The Wall Street Journal reveals that the US Justice Department has asked BNP Paribas to pay over 10 billion dollars for the violation of US sanctions against Iran, Sudan and Cuba. Negotiations are underway to reach an agreement that could close with a much lower penalty. The largest drop was recorded in Milan, where the FtseMib index fell by 0,3%.
RECORD AUCTIONS FOR THE TREASURE, THE 2014 COLLECTION IS ALREADY HALF
Despite profit-taking on the stock market, the honeymoon between investors and Italy continues. Yesterday, in fact, the Treasury placed all 5,75 billion medium-long term BTPs with yields that had fallen to new all-time lows, and 1,75 billion Ccteu at a gross rate of 1,38%. In detail, the five-year BTPs were sold for 2,75 billion at a rate of 1,62%, while the 3 billion 3,01-year bonds were placed at XNUMX%, the lowest auction values ever.
The spread between BTP and Bund closed at 167 basis points from the 165 cents of the opening and the domestic 2,97-year yield at 158%, while the differential between the Bonos and the German equivalent closed at 2,88 basis points, with a rate of the former at 50. 2014%. With yesterday's auctions (and pending the reopening of the Treasury bonds, the Treasury covered around 7% of this year's financing needs. “Compared to last year, we must underline a radical change in the supply structure of the BTPs” notes Chiara Manenti of Intesa. obviously it goes in the direction of a lengthening of the average duration of the Italian debt”.
ENEL AND FIAT PUNISHED BY ANALYSTS
On a thin trading day, the negative report cards of some blue chips weigh. In this regard, the decline of Fiat stands out, which lost 1,2%: the American broker Sanford Bernstein lowered the rating to Underperfom from Market Perform. Enel's decline was sharper (-1,7%) after the rejection of Citigroup, which lowered its rating to Sell from Neutral. Some objectives of the plan, according to analysts, are difficult to achieve given market trends.
Mediaset also falls (-1,26%) after the negative opinion of Bernstein, who revised downwards the forecasts for this year's earnings per share from 0,03 to 0,01 euros and those for next year's EPS from 0,1 to 0,09 euros . Instead, Telecom Italia was rewarded (+0,9%), supported by the Buy recommendation from Deutsche Bank. Industrial stocks moved in no particular order: Finmeccanica -1,2%, AnsaldoSts +0,7%, StM +1,1%, Prysmian -0,5%. Slight decrease for Eni (-0,3%). Saipem gained 0,2% despite Bank of America confirming its negative Underperform recommendation due to margin uncertainty. Among the utilities, Iren rose by 2,03% to 1,155 euro: after the recent drop on the Stock Exchange, the dividend (0,0523 euro, with coupon detachment on 23 June) is very respectable.
WEAK BANKS, BUT VICENZA MAKES POP FLY. ETRURIA
Day of declines for the credit sector. MontePaschi suffers in particular, which lost 2,5% but the declines are more widespread throughout the sector, with the exception of Intesa unchanged. Bpm -1,07%, Banco Popolare -0,51%, Bper -0,98%, Ubi Banca -0,38% closed down. Unicredit loses 0,6%. Banca Popolare dell'Etruria is flying, rising by 19,53% as it approaches the takeover bid price (1 euro) announced by Banca Popolare di Vicenza.
YOOX BOUNCES, ATLANTIA TAKES OFF THANKS TO ETIHAD
On positive ground Atlantia +1,2% in the wake of the agreement in the pipeline for Alitalia with Etihad. Some of the news arriving from Paris bears witness to the title. The commission of inquiry of the French Senate, charged with verifying the regularity of the contract between the State and Ecomouv (a consortium 70% owned by the Benetton company) for the collection of the eco-tax on heavy vehicles, found no irregularities. Under the contract, Ecomouv, now suspended, was expected to generate a cash flow of approximately 90 million euros per year for the next 12 years.
Autogrill fell by 2%. The best stock of the day was Yoox +2,6%. L'Espresso also stands out +3,31%. Meanwhile, La Doria's march continues +7,2% and new record. Since January the increase is 70%. 2013 had closed with a leap of 129%. The food company has about $200 million on the market and, according to consensus estimates, is worth about 11,7 times its estimated 2014 earnings.
