European stock exchanges are cautious in anticipation of today's appointments: Janet Yellen's hearing in the afternoon before the Joint Economic Commission of Congress and the publication at the end of the morning of the minutes of the meeting of 20 October in which the ECB kept interest rates unchanged at zero . The ECB must reduce its asset-purchase program as soon as possible, although that will take time, according to ECB Executive member Yves Mersch: the current ultra-expansionary policy is "currently appropriate," he said, but a The excessively prolonged extension of asset purchases risks providing "wrong incentives" to governments, even going so far as to contravene European rules on state financing.
The Milan Stock Exchange suffers the heaviest drop with the FtseMib index down by 0,87% to 16.361. The other European lists are more resistant: Paris -0,2%, Frankfurt -0,5%. Positive ground in London and Madrid, both at +0,10%.
The dollar, yesterday on the highs of the last 10 months against the euro, retreats to 1,072.
The first timid purchases of government bonds are back after the intervention of the Japanese central bank. The yield of the 0,30-year German Bund is back below 10%, that of the 2-year BTP is stationary just above 170%, while the spread is over 2,26 points. The 2,22-year Treasury Bill climbed as much as 2015%, from 2,18% at the close, a new high since December XNUMX, to XNUMX% this morning.
Brent oil at 46,5 dollars a barrel (-0,4%). An informal meeting of OPEC member countries is likely to be held in Doha on Friday.
Among the energetics: Eni + 0,1% Saipem -0,3%.
There was a marked decline in banks, which in Europe lost just over half a percentage point while in Milan the decline approaches 3%. To cause the collapse only the advances on the plans Unicredit – 3,5% which would be studying, in addition to a capital increase of 13 billion, massive provisions on non-performing loans, in the order of 7-8 billion, and the securitization of loans for 20 billion. Coverage of non-performing loans, 51,3 billion (61,9% covered on the basis of data as at 30 September), would rise to 75% according to the newspaper (therefore 6,7 billion more to be set aside). That of probable defaults, equal to 23,4 billion, would rise to 40% from 34,3% (about 1,4 billion more to be set aside). The market this morning applies the new parameters to the rest of the system.
By reflex, they miss out Banco Popolare, the worst, -5,56%, closely followed by Pop Milan -4,95%. They also go down Ubi -2,8% and Understanding -4%.
Mediobanca -2,3%: announced this morning an industrial plan focused on asset management which provides for the purchase of the share not yet owned in Banca Esperia: 50% of the company specializing in the management of large assets, 141 million euro was paid .
Connected to Piazzetta Cuccia il ribasso di Generali -3%. The Financial Times reports that Mediobanca is ready to sell part of its stake in the insurance company to finance its growth plans in new business areas.
Banca Mediolanum -1,2% after selling its 50% stake in Banca Esperia.
Also declining Mount Paschi -1,7%. The September 2020 subordinated bond was also down this morning, with a 5,6% coupon which returns below last Monday's closing levels, ie before the bank's announcement of the plan to repurchase its subordinated bonds.
On positive ground Fiat Chrysler +0,2%: car registrations in October in Europe fell by 0,3% over the year, to 1,141 million, but the FCA group moved against the trend, reaching 75.108 vehicles sold, +6,6% over the year .
The leap of De Longhi +6,1% (Ubs raised its recommendation to Buy) and by Stable Goods +4,9% after the agreement on the management of properties leased to Telecom.
