MILAN BEST IN EUROPE AFTER BOT AUCTION
DRAGHI: THE FRACTURE BETWEEN THE MARKETS IS REDUCING
Roaring afternoon in Piazza Affari after the successful outcome of the Bot auction. The Ftse Mib index, still the best in Europe today, rises by one percentage point ahead of Frankfurt +0,32%, London +0,17%, Paris drops by 0,1%.
The auction saw the Treasury place €12 billion in 8,5-month bonds at a rate of 0,86%, the lowest since January 2010, down sharply compared to the 1,45% of the previous auction in mid-December.
The yield on the 10-year BTP fell on the government bond market, down to 4,15%, its lowest since November 2010. Spreads dropped sharply to 265 (-12 basis points).
The ECB left the interest rate level unchanged. The decision, expected, did not change the trend of the session.
“There are signs that the fragmentation of financial markets is reducing. but the real economy remains weak,” Draghi said at a press conference. Among the positive signs are "the yields on bonds and CDSs on sovereign securities considerably lower, volatility at an all-time low and the fact that the ECB's balance sheet continues to shrink".
Among the banks, purchases of MontePaschi continue +1,4%. The rest of the sector made slight progress: Unicredit advanced by 0,4%, Mediobanca +1,9%, Intesa +2,5%, Banco Popolare +1,6%.
In asset management, Azimut gains 3,3%, Banca Generali +1,6%.
Among the blue chips of Piazza Affari, the strong rise of Finmeccanica continues with an increase of 3,3%. Ubs intervened on the stock by raising the target price to 6 euros from 5 euros, the recommendation is "buy".
StM was also positive +2,2%, on which Goldman Sachs intervened by raising the target price to 8 euros from 6,1 euros.
