La ECB returns to the fore and pushes up the European Stock Exchanges. Operators are looking to the next Eurotower meeting and are betting again on a rate cut or on new expansive policy moves. Anticipation has returned after the opening of the German hawk Weidmann, president of the Bundesbank, and after today the Spain released data on consumer prices down by 0,2%. Madrid thus returned to deflation for the first time since October 2009 (the index had registered +0,1% in February). According to the Statistical Institute, the decrease in prices was influenced by food and non-alcoholic drinks and the prices of organized trips, which in 2013 had increased more due to the coincidence of the Easter week.
Also from Germany signs of a slowdown in price dynamics have arrived: inflation slowed to +0,9% in March after +1% in February. However, the data is in line with expectations. On a monthly basis, however, there was an increase of 0,3% after the +0,5% in February, against the estimate of +0,4%.
In Europe, Spain closed 2013 with a public deficit of 76,755 billion, or 6,62% of GDP. The finance minister, Cristobal Montoro explained today that, with the new Eurostat rules envisaged for this year, the calculation of the deficit will be reduced to the expected stability target of 6,5% set by Brussels. In the UK the Statistical Office confirmed the preliminary estimate of the GDP growing by 0,7% in the fourth quarter of 2013. Overall growth in 2013, on the other hand, was revised downwards to +1,7% from +1,8% previously estimated. The premier's reassurances on support measures for the economy have come from China.
Il Ftse Eb closed up 1,53% to 21.498 points, the highest since May 2011 driven by the banks' rally, Madrid 1,27%, Frankfurt + 1,4% Paris +0,74% and London +0,41%. In the day the Treasury awarded 3,75 billion Btp to 10 years with a yield down to 3,29%, close to the historic low, and demand at 4,66 billion. The five-year rate at auction today is also decreasing, reaching an all-time low.
In detail, the BTP at 5 years maturity was assigned for 3 billion with a gross yield of 1,88%, new all-time low for this maturity. The new one is good too CcTeu placed for 3,25 billion with a yield down to 1,30%. Today between Milan and London is Charity trading day: all commissions from trading carried out today on the stock markets of the London Stock Exchange and Borsa Italiana will be donated to charity. On Wall Street, stock markets are on the rise: the Dow Jones rises by 0,71%, the S&P500 by 0,81% and the Nasdaq by 0,88%. The Blackberry accounts that are highlighted on the price lists are surprising.
On the macroeconomic front the incomes of American workers they grew by 0,3% in February, bettering analysts' expectations which remained at +0,2%. Expenditure for personal consumption rose by 0,3%, also in line with expectations. The PCE, the indicator ofinflation at the level of personal use products, grew 0,1% over the month and 0,9% over the year, well below the 2% set as the Fed's long-term target. Consumer confidence as measured by the University of Michigan fell. The index fell to 80 basis points in March from 81,6 at the end of February and to its lowest level since last November. The euro traded against the dollar at 1,3747 while WTI oil was up 0,39% at 101,68 dollars a barrel.
The banks run in Piazza Affari: Popular bank + 6,95% Ps + 4,42% Bper + 3,89% bpm +3,68% and Understanding +3,53% which rises on the accounts and on the business plan presented today. From the text of the restructuring plan approved by the European Commission last November it emerged that an independent administrator (trustee) will have to monitor the implementation of all the commitments made by Italy with Brussels for public aid to the Monte dei Paschi. Eni rose by 1,56% after the sale of Galp shares through accelerated bookbuilding aimed at qualified institutional investors at the price of 12,10 euro per share. Eni retains 9% of Galp's shares.
Eyes on the next round of state-controlled corporate meetings: the Treasury in the note on salary caps of unlisted public companies recalled the rules on remuneration also for listed companies, urging the shareholders' meetings to resolve on a proposal to adjust the remuneration of chairmen and directors with powers similar to that of companies that issue financial instruments other than shares (such as Cdp, Poste and Fs). The representative of the Ministry of the Economy in the assembly is bound to vote in favor of this proposal. At the bottom of the Ftse Mib stm -1% Gtech -0,54% Mediaset -0,44% Unipolsai -0,43% and Atlantia -0,16%.
