Eurozone Economic Sentiment Soars to 21-Year High; German inflation in June reaches 2,1% and exceeds the ECB's target, but is lower than the jump in May (+2,4%); Christine Lagarde is optimistic for the single currency area and sees in Green Bonds the opportunity to create a European capital market; Wall Street opens positive and banks rise, so the S&P500 index updates its record along with the Nasdaq (which is currently flat, however). These are the premises of today's performance of the European lists which close with a fractional increase driven by Frankfurt +0,88%. Milan rises by 0,52% to 25.357 points; London appreciates by 0,22%; Paris +0,14%; Amsterdam +0,46%; Madrid flat +0,03%.
The Delta variant of the new coronavirus continues to scare, because it seems that Covid is trying to win the race against vaccines, even if the news comes from Moderna today that its serum works against all variants, including those identified for the first time in South Africa , Nigeria and India and the title flies to New York. Banks are also well represented on the American market, which will distribute 2 billion extra dividends in the next quarter - according to calculations by the Financial Times - after the go-ahead that the Federal Reserve gave following last week's stress tests, passed brilliantly by all 23 of the country's leading institutes.
Facebook is moving in the red, after yesterday exceeding a trillion capitalization for the first time, becoming the fifth company to cross this milestone, after Apple, Microsoft, Amazon and Alphabet. On the currency market, the euro is weak against the dollar, but is currently trading above the 1,19 threshold it previously lost. Among raw materials, oil is up fractionally, with Brent up 0,65% to 74,62 dollars a barrel.
The macroeconomic agenda is rich, bringing a breath of optimism to the area of the single currency. In June, the economic sentiment of the area rose to a 21-year high thanks to the acceleration of the pace of vaccinations which led to further reopenings and improved the mood in all sectors, especially retail and services. Sentiment in Germany hit an all-time high and improved in the six largest EU countries, except for Spain, where it recorded a slight decline.
In Germany, inflation also rose in June, exceeding the ECB's target, but less than in May. However, this was enough for the yield on German government bonds to increase, in the perspective that the ECB, despite recent reassurances, may be forced to change its monetary policy. Speaking at the Business Economic Forum Christine Lagarde noted that "in 2022 there are possibilities for the economy that only in 2019 seemed at least a decade away". The spread between Italian and German ten-year bonds rises to 112 basis points, with the BTP rate at +0,87% and the Bund at -0,25%.
Asset management securities, promoted by Deutsche Bank, shine today in Piazza Affari: Azimut +3,3% (on which the German bank has upgraded its rating to 'buy' from 'hold', citing interesting opportunities for growth abroad and a valuation at a discount of around 40% compared to competitors); Banca Mediolanum +2,32% (after the restart of coverage by Deutsche Bank with the 'buy' rating). Followed by Banca Generali +0,94%. Among the banks, Intesa rebounds, +1,16%, while the decline of the former popular ones continues. Unicredit is flat +0,06%, despite remaining the focus of attention in view of new mergers. According to Alessandro Mazzucco, president of the Cariverona foundation (shareholder of the bank), the group must pursue a positive expansion policy.
At the top of the list are titles in the health sector such as Amplifon +1,89% and Diasorin +1,85%. Industrialists did well, driven by optimism on economic prospects Cnh +2,08%, Prysmian +1,32%, Ferrari +1,11%. Ideas on Telecom, +0,89%, with Il Messaggero speaking of working groups with CDP to verify the feasibility and possible modalities of the single network project. Government reverse on cashback (the control room decided to suspend the rule for six months), in addition to shaking the waters of the majority, with the 5 stars against, it weighs on Nexi's session, -1,2%. Atlantia retreats, -091% and the oil stocks archive another weak session.
Out of the main basket Ferragamo's bleeding does not stop, -2,61%, following the appointment of the new managing director Marco Gobbetti. For Equita and Intesa Sanpaolo, the arrival of a pedigree manager like Gobbetiti reduces the speculative appeal of the stock, denoting the family's willingness to pursue the relaunch of the group independently and reducing the chances of a change of control. The rejection by Jefferies also weighs heavily, with the judgment passing from 'buy' to 'hold', while the target price drops to 18 from 21,50 euros.
Juventus loses 1,77%. According to Reuters sources, the company would have polled a group of banks to evaluate the market response to a possible capital increase to meet recapitalization needs of 300-400 million euros. However, the sources specified that no decision has yet been made and that other options are also being evaluated.
