BAGS BELIEVE IN STIMULUS. ALSO ASIA RISES
UNIPOL ACCEPTS THE EXCHANGES PROPOSED BY FONSAI
Il Taurus makes three of a kind. After the strong increases in Europe and the USA, the Asian stock markets are also starting to close with a positive sign. In Tokyo the increase exceeds one percentage point, Hong Kong marks + 1,35%.
I European lists recorded sharp increases yesterday. And the Milan Stock Exchange was the best performer with an increase of 3,5%.
La London Stock Exchange rose by 2,3%, Paris +2,4%, Frankfurt +2%, Madrid +2,4%.
Wall Street was no different. On the most euphoric day of 2012 the Dow Jones +2,4% earned 287 points; same percentage for the Nasdaq +2,4%, lo Standard & Poor's 500 earns 2,3%.
The euro also strengthened rising to 1,254 against the dollar, from 1,245 at the previous close.
Sul government bond market the yield of ten-year BTP remained unchanged at 5,63%, while the fall in Bund quotations allowed for a reduction in the spread to 430 points (-11 basis points).
Germany has issued five-year government bonds, the so-called Bobl, for around 4 billion euro at an average rate of 0,41% against 0,56% in the previous placement. Despite the very low yield offered (at an all-time low for a five-year maturity, the securities placed today will be redeemed in April 2017) the offer received was substantial and amounted to 6,2 billion with a bid to cover ration of at 1,6.
Quite different the situation in Spain: today the Treasury of Madrid will face the market with an issue of 2 billion medium-long term bonds, a decisive test to avoid resorting to support from the IMF and the EU bailout fund.
Meanwhile, the Portugal it placed 1,5 billion bonds with declining yields and good demand: 1 billion 12-month bonds at 3,834% from 3,908%, 500 million 6-month bonds at 2,653% from 2,935%. Requests for 2,7 and 4,3 times the offer. It should be noted that over the 12 months, the yield on Portuguese bonds is now in line with the Spanish ones.
Oil was up for the third day in a row with Wti growing to 85,7 dollars a barrel (+1,7%), Brent to 100,8 dollars (+2%).
A that you owe so much euphoria? The markets have become convinced that: 1) in Europe something is finally moving. The EU is developing, anticipates the Financial Times, a "not too invasive" rescue plan for Spain. Meanwhile Angela Merkel announces her project for greater political integration; 2) cAbove all, the prospect of a new stimulus package for the US economy is growing, while President Obama continues his pressure on Europe.
Mario Draghi, did not give way to great hopes of recovery. "Economic prospects within the euro area – she said – remain weak with heightened uncertainty weighing on confidence and increasing downside risks". But the president of the ECB, while disappointing those aiming for an immediate reduction in rates, assured that the institute will continue to provide liquidity to banks with various instruments and is ready to act if the situation (see Greece or Spanish banks) requires it . Furthermore, Draghi has left the door open to reducing the cost of borrowing, already to a minimum, at the next board meeting. That is, after the EU summit at the end of the month: first, in short, the politicians have to move.
Meanwhile, in the USA the president of the Atlanta Fed Dennis Lockhart declared that "the hypothesis of a further monetary stimulus to the economy must be given due consideration" . The party of governors ready to support a new Quantitative easing at the next FOMC meeting on 19-20 June is growing, probably the last useful date before entering the pre-election semester.
From Beige book, the most complete indicator of the state of health of the union, it emerges that the US economy is still in "moderate growth".
In Europe, the best performers were commodity stocks (Stoxx of the sector +5,2%), banks (+3,9%) and insurance companies (+3,7%).
Stands out, in the policy sector, the step forward, perhaps decisive in the long negotiations between Unipol +3,2% and Fonsai +2,3%. The board of directors of the Bolognese company has accepted the proposal of Premafin, Fonsai and Milano Assicurazioni which envisages a participation of UGF in the new aggregate equal to 61% of the capital. This can be read in a note issued by Unipol with which the Bolognese insurance company formalises the proposal to the Ligresti companies aimed at the integration project by merger.
Ma insurance companies toast all over Europe. French group Axa rose 6,9%. In Milan, Generali gained 3,6%. Mediobanca, the largest shareholder of Generali, rose by 6,2%.
Strong increases also for banks: Unicredit rose by 4,4%, Intesa +5,3%, MontePaschi +4,5%, Banco Popolare +4,1%. Banca Popolare dell'Emilia climbed 9,7% after Mediobanca initiated hedging with positive outperform recommendation.
Asset Management Boom: Azimut +7,7%, Mediolanum +5,5%, leap of Banca Generali +10% after the release of positive data on May collection.
Revenge, albeit less glittering than financials, also for the industrial sector: Fiat gained 2,3%, Pirelli +3,8%, StM +2,2%, Fiat Industrial +4,7%. Finmeccanica leads the race +7%.
Leap also from Lottomatica Up 7% after the government denied that there are any imminent taxes on the gaming sector.
