RATES OF CTZ, BTPI AND SPAIN SURPRISE. MA BAGS CELEBRATE SHANGHAI RECOVERY
Rates rise but Piazza Affari appreciates that both the Italian and Spanish bonds at auction have all been placed. The Milan Stock Exchange is on the rise, the Ftse Mib index is now up by 1,02% to 15266 points. So in Europe. London +1,01%, Paris +1,06, Frankfurt +1,69%, Madrid +1,22%.
The Treasury returns in September. In the first end-of-month auctions, all 3,5 billion euros of the new 24-month CTZ were allotted, but the yield soared to its highest level since September 2012, reaching 2,403% from 1,113% in the May auction. An increase of 129 points which confirms the pessimistic forecasts of the day before.
The Treasury has also assigned inflation-indexed BTPs with a 5-year and 15-year maturity for one billion euros, the maximum pre-established amount. The average yield on the 2018 maturity rose to 2,91% from the 1,83% of the May auction and that on the 2026 bond rose to 3,75% from the 3,23% of the February placement. After the auction, the spread returned to 299 bp.
Shortly before the Italian auction, Spain placed 3 and 9-month government bonds for a total of 3,07 billion euros, just over the maximum target of 3 billion, but had to pay higher rates. The average yield on quarterly maturities rose to 0,869% from 0,331% in the May auction and that on 9 months returned above 1%, to 1,441% from 0,789% a month ago.
The spread between Spanish and German ten-year bonds widened slightly to 321 basis points, with the Bonos rate at 4,97%, after the marked rise in yields recorded in the Spanish Treasury's 3- and 9-month bond auction.
The auction was preceded by good news from China. The Shanghai Stock Exchange, in heavy losses up to an hour after the closing, reacted in the final closing at -0,2% after recovering almost 6% during the session. Behind the recovery is the rumor that the Central Bank of China will announce at the Lujiazui Forum, an event that opens on Thursday in Shanghai, an adjustment to the current monetary policy.
The Milan Stock Exchange is up, the Ftse Mib index rises by 0,6% to 15212 points. So in Europe. London +0,76%, Paris +1,23, Frankfurt +1,35%, Madrid +0,96%. Fiat +3,94% is the best title while the rumors are multiplying on upcoming developments in the Chrysler dossier. But the automotive +2,5% is still the brightest sector in the Eurostoxx driven by Daimler +2,3%.
After yesterday's 5% slide following the Ruby ruling, Mediaset +4,93% rebounds in Piazza Affari: Mondadori also did well, which yesterday lost more than 6% and today grows by more than 4% to 0,87 euros. Among the banks Intesa rises by 1,79%, Unicredit unchanged, MontePaschi +1,7%. Enel falls by 0,2%, Eni +0,78%, Telecom Italia +0,58%. Diasorin +3,04%.
Impregilo accelerates in Piazza Affari the day after the start of the merger with Salini approved by the Board of Directors with closed markets: the share, which started positive, grows by 10% to 2,94 euros. The analysts' reports are awaited and for now there is that of Banca Akros, which has raised its opinion on the general contractor to 'accumulate' with the target price raised from 2,5 to 3,3 euros. The shareholders' meetings for the ratification of the merger (Salini holds over 88% of Impregilo) will be in September and the operation will be completed by the end of the year, with effect from 1 January 2014.
Fifth uninterrupted month of positive inflows for investment funds. After the +6,9 billion euro in April, in May collection was positive for 8,7 billion, the highest since May 1999 when the industry had collected 11 billion. With this result, nearly 36 billion euros (35,8 billion) have been raised since the beginning of the year. Assets still update a new record by rising to 1.264 billion.
