The three days of fire for the markets opens with two positive news: the yes, albeit conditional, of the German Constitutional Court to the ESM and the adoption by the European Union of the legislative proposal establishing the single supervisory mechanism for banks of the eurozone (which gives the ECB oversight powers over the approximately 6000 lenders in the eurozone). The euro is trading at 1,2895 against the dollar after exceeding 1,29, the highest level in four months. The Stock Exchanges, after a confident but cautious start, accelerated euphoricly, climbing to the highest levels of the last 14 months. In the middle of the session, the main European markets cut gains but moved sharply higher, with the exception of London (unchanged). Milan rises by 1%, Frankfurt rises by 0,63%, Paris by 0,46%.
The focus is now on the general election in the Netherlands, with the polls that nonetheless assign an advantage to the pro-European parties (the first exit polls will be released after 21.00) and there is growing hope for a move by Ben Bernanke who could launch a new quantitative easing program tomorrow, while on the other side of the he ocean also the Chinese premier has opened up to new stimulus measures to hit the growth targets for the end of the year. Gold, the ultimate safe haven asset affected by inflationary fears, is also on the run, rising to 1.746,9 dollars an ounce, the highest in six months.
The Btp-bund spread drops again to 343 points with a yield of 5,05% and the Bono-bund differential falls below 400 points. But the drop in rates is evident also and above all on shorter one-year maturities: the Treasury placed 12-month bonds with rates dropping to 1,692% from 2,767%.
"Germany has given a strong signal for Europe," he commented Angela Merkel in the Bundestag by the way the judgment of the court of Karlsrhue. After the German yes to the ESM, the Eurozone breathes a sigh of relief while the thorny tug of war between Greece and the Troika remains on the table and the markets are awaiting Spain's request for aid. But now, thanks to Draghi taking the field, it is possible to trace a more defined path towards a possible resolution of the crisis. The inaugural meeting of the ESM will be held in Luxembourg on 8 October, announced the president of the Eurogroup Jean-Claude Juncker. In Piazza Affari they run, as expected, the banks: Bmps +4,7%, Unicredit +3,3%, Banco Popolare +2,78%. Stm + 3,16% and Enel + 2,42% were also highlighted, which requested a new mandate to issue bonds of up to 5 billion euros. Eurotech flies (+13%) after a mega order worth 60 million dollars. At the bottom of the Ftse Mib Lottomatica -2,14%, Ferragamo -1,75% and Diasorin -1,41%.
