La ECB left interest rates unchanged. The decision came as no surprise to markets who were not expecting any drastic action at today's meeting. Thus, after the Eurotower press release on rates, it had no particular effects on the price lists which continued to rise, albeit fractionally, with Milan turning into positive territory. But the words of Mario Draghi during the usual press conference triggered the debacle: the president of the ECB has in fact moved forward the prospects for economic recovery by revising downwards the growth estimates for the Eurozone for the current year to -0,6% from -0,5%. The prospects of growth of the Eurozone they have some "prospects of recovery" in the second half of the year, Draghi said, promising an "accommodating" policy for as long as necessary. Various economic stimulus measures were discussed at the meeting, but for the moment the ECB has decided not to act.
The slowdown was instantaneous and the price lists reversed their course, closing in a marked decline. TO Business Square the Ftse Mib even lost 2,63% dragged by the banks, with the spread significantly raising its head above 280 basis points from 260 yesterday evening, thanks to the decline in German government bonds after Draghi said that the 'Eurotower has faced the possibility of having negative deposit rates. Worst title is Bmps which collapses by 8,08% after being suspended downwards. Heavy drops also for Ubi Banca -6,16%, Banco Popolare -5,23%, Bper -5,02%. Unicredit -4,65% and Intesa -4,49%.
But some "heavy" stocks of the main list are also down sharply, such as Fiat -6,48%, also suspended downwards. Today the Jeep brand of the Chrysler group has decided to recall 435.400 SUVs due to problems with the transmission oil cooling system and passive safety system management software. will be born from the merger by incorporation of Fiat Industrial and CNH will be called CNH Industrial.
Frankfurt lost 1,19%, London 1,03% and Paris 0,99%. France's unemployment rate jumped to 10,4 percent in the first quarter of 2013, 0,3 percentage points more than the previous quarter, reaching its highest level since 1998, French statistics institute Insee said today. Tensions continue on the Turkish stock market which has reacted negatively to the new aggressive statements by Prime Minister Recep Tayyip Erdogan who, according to the proven TV Ntv, today denounced the involvement of "terrorists" among the demonstrators.
The wave of sales does not land Wall Street where the Dow Jones and the Nasdaq, after a slightly moved opening, move in positive territory. Traders are waiting for more information on the state of the US economy and on possible moves by the Fed which could curb quantitative easing. We look at the labor market to which the Fed's decisions are explicitly linked. During the day, the US Labor Department released data on claims for unemployment benefits which dropped by 11.000 to 346.000 last week. The figure is in line with expectations. All eyes are now on tomorrow's employment data. The euro-dollar exchange rate rose to 1,3136 (+1%) and WTI oil to 94,77 dollars a barrel (+1,10%). Gold is back above $1.400 an ounce.
Returning to Piazza Affari, for Mediobanca the Camfin shareholders should adhere to the Tronchetti Provera takeover bid and allies despite the offered price of 0,8 euro per share implying a discount of around 12% on the nav. "We recommend joining as we do not believe a counter-offer is probable" write the analysts of Piazzetta Cuccia. On the RCS front, the Benettons have confirmed that they will not subscribe to the capital offer.
