EUROPE RAISES ITS HEAD, BAGS OK. UBS KICKS TOD'S: -4%
European stock markets are up, thanks to the improvement in macro data. Madrid rose by 0,96%, Frankfurt by 0,6%, London by 0,56% and Paris by 0,75%. In Milan, the Ftse Mib index marks +0,63% to 16.340 points.
Thanks to the good performance of France and the surge in Germany, the euro area PMI composite index advanced from 48,7 to 50,4 points, above the expected 49,1 points, reaching an 18-month high and surpassing the 50-point threshold that separates the phases of expansion from those of contraction of the economy.
In Italy, the seasonally adjusted index of retail sales grew by 0,1% in May compared to April, the first increase in 14 months. The euro appreciates against the dollar to 1,323 from 1,322 yesterday evening.
The 10-year BTP strengthened and its yield fell to 4,33% (-3 basis points). The spread with the Bund is 273 basis points. The banks on the list did well, with Banco Popolare +1,6%, Bper +2,93%, Intesa +1,68%, Unicredit +1,74% (again above 4 euros). Unipol +1,39% and Fonsai +1,79% are still positive. Generals +0,63%.
In Piazza Affari luxury stocks, sensitive to the trend of the Chinese economy, are in the spotlight: Tod's slips by 3,86% penalized by UBS, which cut its recommendation from neutral to sell, with a target price of 104 euros, lower than the market value of 120 euros, reached after last month's rally linked to speculation that, after the sale of Loro Piana to Lvmh, the company could be the target of some buyers. Ferragamo is also bad -0,15%, while Luxottica, yesterday down by 2,48, gains 1,12% on the eve of the accounts.
Fiat is up 0,4%. Stm still down sharply -1,3%, yesterday it fell by 10,57% after a disappointing quarterly performance: today Ubs reduced its target price from 7 to 6,8 euros (stock trades at 6,66 euros), confirming its rating neutral. Atlantia +2,14% already rewarded yesterday by the positive opinion of Morgan Stanley. Saras recovering after the judgment of Mediobanca Securities which raised the rating to neutral from underperform.
