MPS CELEBRATES EU GIFTS, THE SPREA DROP TO 317. FIAT BOUNCES, BLACK DAY FOR TLC STOCKS
The revenge of the so-called European periphery continues. Milan is the best European stock exchange with the FtseMib index gaining 0,61% per share 16.004, Madrid follows where the Ibex rises by 0,13%. London moves in the opposite direction with the Ftse 100 down by 0,16%, sales also in Paris -0,14%. In Frankfurt +0,13% the Dax is just above parity.
The danger, albeit limited, nonetheless comes from the Mediterranean: Cyprus runs the risk of not honoring the repayment of the loans due in December, if an agreement on a bailout plan is not found with the troika formed by the EU, the ECB and the IMF. "If the state does not get 250 to 300 million euros in the next few days, then it will stop honoring payments," Christos Patsalides, a finance ministry executive, told a parliamentary committee. The threat, in truth, does not scare much, as demonstrated by the trend of the debt market.
The spreads are well tuned. The Btp/Bund differential ten-year declines 7 basis points to share 317 for a yield of 4,54%. The 2-year bond consolidates the drop below 200, at the moment -8 bps to 196. The US is blowing thaw on the fiscal cliff front. The US stock market moves higher with the Dow Jones index up 0,66%, S&P +0,77%, Nasdaq +0,9%.
The lower tensions allow us to appreciate the monetary easing confirmed by the Fed last week. It is no coincidence that among the blue chips, the biggest increases are from the banks: Banks of America salt by 2,4%, Goldman Sachs + 2,6% Citigroup +2,3%. Lenders are the main beneficiaries of last week's Fed decision to push further on monetary easing to encourage economic recovery.
On the shields in Piazza Affari the Monte Paschi stock which leaps by 6,09% after the conditional OK of the EU commission to the Monti bond. The rest of the sector is much less exuberant: Unicredit+ 0,3%Understanding + 0,8% Pop.Milano + 1,39%. Pop. Emily +3,22%. Redemption of Fiat + 3,36% which partially recovers Friday's loss triggered by the rumors, denied, of a capital increase. Exor +1,28%. Among other industrial stocks Finmeccanica salt of 1,3%, Prysmian -0,07% StM earn 0,47%.
All telecommunications stocks fall (Stoxx -1,7%), driven by the fall in the Dutch kpn which loses 13% after announcing that it has canceled the second tranche of the dividend. Telecom Italy -1,13%. The company, unconfirmed news, would have appointed Morgan Stanley to deal with the spin-off of the network as an advisor. Highlight again Mediaset up 2,3%. Opposed the oil, Saipem -0,6% Eni + 0,39%.
