Positive morning for the European stock exchanges in the wake of the improvement in German politics. Milan +1,75% is the best market with a leap around 21.800 ahead of Frankfurt +1,3% and Zurich +1,2% and Madrid +1% Paris advances by 0,9%. Société Générale was flat while Commerzbank climbed 0,4% after selling its Equity markets and commodities business (EMC) unit to the French bank. London +0,6%.
In the morning, the Btp/Bund spread fell to 228 basis points, reaching its lowest since June 21st. Only yesterday morning the spread had risen again up to 250 basis points, an enlargement to which the threat of a political crisis in Berlin had contributed. The rate on the ten-year BTP dropped to 2,60% in the morning.
The market moved to highs after theparliamentary hearing Minister Giovanni Tria reaffirmed the government's commitment to reducing the debt/GDP ratio, while mentioning the possibility of a downward revision of the 2018 GDP estimate; the minister also stated that it is the intention of the executive not to proceed with a corrective maneuver during the year.
In the euro area, production prices rose by 0,8% in May on a monthly basis, and 3% on an annual basis: +2,7% expected. A joint research by the Ifo institute, the Kof of Zurich and Istat indicates that growth in the Eurozone should continue this year, albeit at a reduced pace compared to 2017. GDP growth should be 0,4% in the second and third quarters, with a slight acceleration in the last quarter. This should translate into 2,1% GDP growth in 2018.
Banks are up sharply in Piazza AffariAnd. Lead the race Bench Bpm +3,5% after rumors about the sale of the Npls. The credit basket rose by 2,7%, compared to +1,3% in the European Stoxx. Among the Bigs Intesa advances by 2,4%, Unicredit +3,3%.
Leap forward by Leonardo +3% after signing a contract with the UK government to support its existing threat simulation systems for Typhoon, Tornado, Merlin and Wildcat aircraft.
Generals +0,3%. Unipol up well after the rumors that the Bank of Italy would have suggested a merger with the subsidiary Unipol Banca.
Also good Prismian +2,3%. Stmicroelectronics +1,5% and Tim +2% which has signed a multi-year strategic agreement with suppliers which, as stated by Amos Genish, "will allow both Tim and the industry players to be able to identify the best industrial strategy for the short and long term".
A2A +1,8%. According to the CEO of the Lombard multiutility, Valerio Camerano, the company is looking at the photovoltaic assets offered for sale by Glennmont in Italy.
Fiat Chrysler +0,3%, despite the 19,2% drop in registrations, compared to -7,2% in the car market.
Still declining Recordati down more than 3% after yesterday's crash. Net of the coupon, the share price is very close to the takeover bid price (28 euros) which Cvc Capital will launch after the acquisition of 51%.
