The package of measures launched by the ECB pushes the European price lists. In particular, the Ftse Mib driven by the banks is running, archiving a +1,52%, after an intraday leap of 2%. Paris rises by 1,06%, Madrid +1,12%, Frankfurt by 0,21% but below 10 thousand points. In April, orders to German industry rose by 3,1% on month and by 3,4% on year, well above the expectations of analysts who expected a +2,8% for the monthly change. London, on the other hand, closed flat -0,08%, with the Boe leaving the cost of money unchanged at 0,5% and confirming the bond purchase programme, a quantitative easing measure, for 375 billion pounds.
Data on retail trade in the Eurozone is also good which rose by 0,4% in April compared to March (when it had done +0,1%). In the EU the index increased by 0,6% after 0,1%.
However, the ECB lowered the estimates on the GDP of the Eurozone to +1% for 2014, 1,7% for 2015 and 1,8% for the following year. Three months ago the estimates were at 1,2%, 1,5% and 1,8% respectively. Five measures implemented today by Draghi:
1) he cut rates to 0,15% from 0,25%, a new all-time low;
2) deposit rates were reduced to -0,1%, negative for the first time in Euroland;
3) the Eurotower will interrupt the weekly operations with which it reabsorbs the liquidity created by buying government bonds during the debt crisis, amounting to approximately 165 billion euros;
4) havarato a new version of the Lter funding, this time linked to credit to the real economy. The new loans take the name of Tltro, i.e. targeted longer-term refinancing operations, long-term loans to banks aimed at relaunching the credit they provide to households and businesses.
5) the ECB has announced to accelerate the preparatory work for the purchase of ABS (asset back securities) to enhance the functioning of the monetary policy transmission mechanism. Draghi specified that the ECB will only buy "simple, transparent and real ABS, i.e. based on real and non-derivative loans".
The reaction of the spread was instantaneous, falling below 150 basis points and then closing at 153. The euro weakened against the dollar, falling to 1,3516 but then recovering to 1,3636 (0,15%).
Bank stocks shine: Mediobanca +4%, Unicredit +2,86%, Intesa +2,37%. Mps +0,16% awaiting the Board of Directors on the price of the capital increase. Outside the Ftse Mib, Banca Carige dropped 1,6%. The Foundation's governing and administrative board was brought forward for tomorrow for an update on the reduction of the stake in Carige, currently at 29,8%, before the start of the 800 million recapitalization which is currently scheduled for 16 June. Azimut +3,78% after the May figure on positive net inflows of 340 million euro, up on the 262 million in April. Mediaset also performed well, +2,73% on the hypothesis of a 350 million offer from Telefonica for the 22% share of Dts, the parent company of Canal+, the main Spanish pay TV. Telefonica neither confirms nor denies the hypothesis, while Mediaset Espana claims it has not received any offers and in the morning a CDA of the Biscione was held on the auction for the television rights of Italian football. Telecom Italia +1,17% following the consolidation of the sector in view of the merger between the third largest mobile telephone operator in the United States, Sprint with the fourth, with T-Mobile through a 32 billion dollar transaction.
At the bottom of the Ftse Mib is luxury with Yoox -6,13%, Ferragamo -2% and Moncler -0,45%. The sector pays for the profit warning of the English competitor Asos. Fashion e-commerce group Asos cut its full-year ebit margin forecast to 4,5% from 6,5% on strong sterling, lower retail margins coupled with higher expenses for promotional activities.
On Wall Street, the indices are in positive territory: Dow Jones +0,59%, S&P500 +0,48% and Nasdaq +0,69%. FeaturedAmazon after announcing a new product launch in two weeks. WTI oil dropped 0,16% to 102,48 dollars a barrel.
