The challenge launched to Europe on the Italian accounts does not seem to produce anything good, after the collapse on Friday Milan remains in the red and the spread flies.
Minister Giovanni Tria returns tonight from Luxembourg and will not participate in Ecofin tomorrow, the move worries the markets and, after a positive morning, Piazza Affari fails to rebound. The main list loses 0,49%, 20.609 points, weighed down by the banks hit by a new wave of sales: Bpm bank -5,75%; Ubi -4,57%; Bper -3,94%; Understanding -3,91%; Mediobanca -3,05%; Unicredit -2,34%. The spread weighs on the sector, with government bonds which, after a period of respite, close down. The 3,3-year yield rises to XNUMX% and worsens differential with the Bund, +2,54%, reaching 282.90 basis points. The two-year bonds were bad, as a few hours before the closing, they recorded a spread rising by about twenty points. It is perhaps worth recalling that every 100 points more of the yield differential with the German 30-year bond costs Italian banks between 50 and 1 points less than Cet1, the "Common Equity Tier 1,57 Ratio", which is the main indicator of assessment of the capital strength of a bank. In this climate, the euro suffers and the exchange rate against the dollar falls to the XNUMX area.
Economy Minister Giovanni Tria's reassurances to the Eurogroup that "debt/GDP will fall" in 2019 are not producing great effects. Furthermore, the minister will not participate in Ecofin tomorrow (he will be replaced by Alessandro Rivera, director General of the Treasury) and is on his way home to dedicate himself, it seems, to closing the update of the economic and financial document. According to Deputy Prime Minister Luigi Di Maio "there are no emergency reasons" for this return. The pentastellato leader also believes that "some European institutions play at terrorism on the markets". According to Commissioner Pierre Moscovici, the European Commission will wait for October 15 to pronounce itself on the Italian maneuver (date of sending the draft budget to the institutions), but at first sight there is a significant deviation from the "commitments made". As regards the deficit/nominal GDP with 2,4%, the threshold of 3% is not exceeded, but for the structural deficit theand EU rules want a reduction. The vice president of the EU Commission, Valdis Dombrovskis, is on the same wavelength.
Returning to the Stock Exchange: the rest of Europe is well tuned, with the exception of London -0,19%. Frankfurt 0,75% salt; Paris +0,24%; Madrid +0,19%. Openness is good for wall street, which is currently accelerating, thanks to the agreement reached between the USA and Canada on the new NAFTA. The trade deal is celebrated in these hours by President Donald Trump and is celebrated by many stocks in the auto sector, including fca + 2,4%.
FCA, +2,3% is also among the best stocks of Piazza Affari with Moncler +4,58%: Buzzi +3,72%; stm +2,23%. The oil companies are doing well, above all Tenaris, +2,7%, encouraged by a possible easing on the trade war front. The Petroleum among other things, it continues to gallop and Brent rises by 1,61% to 83,56 dollars a barrel.
Among the non-performing securities there is Telecom, -5,3%, on which the relegation of Barclays to 'under-weight' from 'equal-weight' weighs, with the target price dropping from 60 to 43 cents.
Outside the main basket it still goes down Astaldi, -28,69%, after the collapse on Friday following the request for composition with creditors with reserve to be presented to the Court of Rome.
