Yet another session on the roller coaster in the era of the new coronavirus ends on the rise, but today the bazooka of central banks, starting with that of the ECB, finally reaches its target.
Business Square it gains 2,29% and climbs back to 15.466 basis points. They close in green Frankfurt +2,06%; Paris +2,68%; Madrid +1,96%; London +1,99%. The biggest leap occurs at Zurich, +5,44%. After numerous changes of pace, the European price lists find peace when too Wall Street, started down, seems to turn to a good stable. US President Donald Trump said there are therapies that can be implemented quickly and was optimistic about the chances of obtaining hundreds of billions of dollars in aid from Congress.
The measures decided by the central banks and those of the governments against the consequences of the economic standstill due to the pandemic, seem to have the desired effects on the markets too, although the dollar remains the most sought-after asset in this phase. The exchange rate with the euro narrows further to 1,067.
The intervention decided overnight by the European Central Bank, with the 750 billion euro Pandemic Emergency Purchase Programme, which essentially brings Qe purchases to 110 billion euro a month between now and the end of the year, eases tensions on bonds , especially since, regardless of the rating, Frankfurt is committed to buying (within the limits of the capital key) also Greek bonds. Decisions would be taken by majority vote and defended by Christine Lagarde against the objections of Germany and the Netherlands. A decisive change of register by the president after the imprudent comment "we are not here to reduce spreads" last week. The intervention announced by the ECB shows the "very determined" will to support the Italian and European economy without limits, Fabio Panetta, member of the Eurotower executive committee, told Tg1.
Lo spread between Italian and German ten-year bonds consequently plunges, at the beginning, to stop at the end at 196 basis points (-26,95% compared to the day before), with the yield of the BTP falling back to 1,79%.
In line with the other central banks, the BoE also moved today, cutting interest rates by 15 basis points to 0,10% from 0,25% and expanding its Qe program from 200 to 645 billion pounds . In the US, the Fed, in addition to having cut interest rates and having launched a series of emergency measures to guarantee the liquidity necessary for the financial system, has instead announced that it will create temporary dollar swap lines to facilitate replenishment in dollars by 9 other central banks: Australia, Brazil, Denmark, South Korea, Mexico, Norway, New Zealand, Singapore and Sweden. In recent days, with the surprise rate cut, the US central bank had announced similar agreements with the Canadian central bank, the Bank of England, the Bank of Japan, the ECB and the Swiss central bank. The White House, says Booomberg, is considering issuing US public debt securities with maturities of 25-50 years to finance government stimulus to the economy.
The climate of greater confidence helps the rebound of the Petroleum: Brent +9,49%. $22,27 a barrel. Stay at the windowgold, which trades at $1478 an ounce.
In Piazza Affari the comeback of Unipol, which gains 17,73%. Fashion is appreciated with Ferragamo +11,80%, however Moncler lost 1,75%. Well the oil, Saipem +10,70%. soaring by Post + 8,54%.
Banks welcome the collapse in spreads with a sigh of relief: the best is Unicredit, +5,29%, which decided to close 70% of its branches due to the coronavirus with the approval of the unions. Well Snam, +4,99%, later 2019 results better than expected and with the proposed dividend of 0,2376 euro per share
In black jersey it is fca, -5,13%, which has lost 56% since the beginning of the year. To weigh today is the announcement of a ttemporary interruption of production also in the USA. In the wake Exor -1,64%.
Male nexi, -2,8% (8,62 euros per share), below the placement price of 9 euros last April. Letter for Ivy -2,22% and Buzzi -1,86%.
