The Monti effect continues on the Italian markets. By mid-morning, Piazza Affari was the best European Stock Exchange, up 1,66%. The situation also improves on the front of the spread (in sharp decline, to 477) and yields on ten-year BTPs (back to 6,5%). The other price lists are also in positive territory – but with smaller margins: Paris (+0,52%), London (+0,31%) and Frankfurt (+0,60%).
MONTI AL COLLE: FLASHES OF SERENITY FOR THE STOCK EXCHANGE AND BTP
STILL TURBULENCE. AIR OF RAIN ON THE SKIES OF PARIS
The Monti effect has raised the temperature of share prices, in Milan and in the rest of Europe, as well as favored the absorption of billions of 12-month BOTs at 6,08%: little short of a miracle given the current storm past. But even miracles these days are short-lived: after the braking of the PDL, the increase was reduced to 0,9%. Meanwhile Monti, from Berlin, warned: “We have a huge job to do”. The spread falls below the 500 points threshold, reaching 485 bp.
New perturbations. Meanwhile, dismayed Europe observed a new storm arriving, this time over the skies of France: in a single day the spread between Oat and Bund it jumped to 168 points. Blame a "technical" error by S&P which erroneously signaled the downgrade of Paris. In the wake of this injury (for which Nicolas Sarkozy has already fallen on a war footing) London closed down -0,4% and Paris -0,4% while Frankfurt closed up 0,6%. Confirming that positive news does not make news, the announcement of the birth of the new coalition government in Greece, led by Lucas Papademos, former vice president of the ECB, did not echo.
Forecast. Dense fog around Palazzo Chigi: it's better to slow down. The "mystery" of Paris also confirms that these days, it is better to venture into the European price lists only with an umbrella. Especially on Fridays: barring certainties that are unpredictable for now, no one likes to face such an uncertain weekend with open positions, both upward and downward. When in doubt, it's better to stay light to avoid indigestion. The macro data, which signal a further slowdown in the European economy in 2012, do not lead to strong consumption for next Christmas.
The appointment. Spotlight on Telecom Italia (yesterday +2,1%) after the board meeting on the third quarter. At 10 there will be Franco Bernabé's conference call with the analysts. At 12, the meeting with the press of the president and CEO Marco Patuano. Yesterday, Intesa's general manager, Gaetano Micciché reiterated that "Telecom, as Alberto Nagel said, is an important international company that certainly needs internal and external growth". Regarding the settlement of the accounts of Telco, which manages TI shares at 2,2 euros, Micciché added: “The financial situation up to May is functioning well. When the time comes, we will evaluate what to do together with Telefonica, Generali and Mediobanca". For now, the Italian storm is calming down. But Wall Street celebrates in moderation: Dow Jones +0,96%, S&P +0,86, Nasdaq up only 0,13% despite Cisco's rally +5,7%, which outperformed Merck +3,7, which raised the dividend to 5% per annum. But the price list was held back by the slide of Apple -2,6%, due to lower deliveries of the iPad, thanks to the problems of the Chinese supplier, Foxconn. Meanwhile Goldman Sachs +0,2% and Morgan Stanley are evaluating whether to reduce the use of mark-to-market in their accounts: this too is an effect of the fall in BTPs, now the preferred security for speculating against the euro area, points out the New York Times. Unemployment claims drop to 390, the lowest in the last seven months. But Ben Bernanke, president of the Fed is not deluded: “The economic problems of the United States are very serious – he said -. The Fed is doing everything possible to return to growth, but we are still far from where we would like to be". Tensions also eased on Asian price lists. Hong Kong recovers 1,09% after falling 5% in the previous session. Tokyo is also on positive ground: the Nikkei 225 index marks +0,37%.
In Piazza Affari, the banks closed yesterday: Unicredit, on the eve of its longest weekend (in view of the maxi-increase and business plan) rose by 3,9%, Intesa +2,6%. MontePaschi gained 1,2%, Banco Popolare +3,5%, Ubi +2,5%. The insurance companies were negative: Generali -0,4%, Fondiaria-Sai -2,8%. Strong increases for asset management stocks: Mediolanum rose by 3,8%, Azimut +7,3%. Both companies have released their quarterly results. Among the industrialists, Pirelli was up 4,2% after yesterday's presentation of the new industrial plan. Finmeccanica rose by 3%, Fiat +2,6%, Fiat Industrial +5,2%. Closure still negative for Mediaset -0,5%, which had fallen by 12% the day before. Enel gained 1%, Atlantia +3,3%. Negative Eni, which lost 1,2%. Tenaris also fell -1,1%. Fireworks for the debut of a new freshman at the Aim market in Piazza Affari: Terni Green, a company that operates in the environmental sector (recovery of materials and energy), recorded a 34% increase. Yoox fell -9,9% after disappointing results.
