Japan doesn't stop anymore. This morning the Tokyo Stock Exchange recorded another rise of more than 1,1%, the highest since July 2008. Prices were driven by the reassurances on the purchases of securities by the Boj. Hong Kong and China also rose. Even today, two positive data are arriving from Beijing's economy: the increase in loans and that of reserves. The Chinese central bank has reserves of 3.440 billion dollars (plus 130 million), or a figure equal to the GDP of the whole of Germany, and could buy back twice the Italian public debt.
The result is the sharp rise of all stock exchanges. Piazza Affari, regardless of the default risk (contagion for the entire EU) flies with the FtseMib index which closes up by 3,19%. All European stock exchanges recorded strong increases,
Even Italy, targeted by the EU's warnings, must thank Asia. The rally in Piazza Affari and, above all, that of government bonds is only the result of the inflow of capital freed up by the moves of Abenomics (among 50 and 100 billion). Yields on 3-month BOTs thus slipped to historic lows (0,243%) while 12-month BOTs dropped to 0,922% (against 1,54% after the elections).
The Treasury is trying to take advantage of the wind: while waiting for the Btp Italia which will be launched on Monday 15th, the auction of the three-year Btp is scheduled for today.
THE INDEXES
Wall Street continues to grind new all-time highs. The Dow Jones index rises by 0,8% to 14.796 points, the S&P index advances by 1% to 1.585 points, the Nasdaq gains 1,5%. On Wall Street, the increases are widespread across all sectors. Among the techs, Intel rises by 2,8%, Cisco +2,6%, Microsoft +2,1%, Oracle +2,5%. Leap of Facebook which advances by 4,2%. Apple marks a more contained rise of 1,2%. Quantitative easing will last at least until the end of the year without correction. This is what emerges from the minutes of the last meeting of the FOMC, the monetary policy committee of the US central bank, and from the reading of the debate that took place between the directors of the Fed.
In the meantime, the battle over the budget has resumed. Yesterday, President Obama presented the 2013 budget to Congress: tax increases for the richest (opposed by the Republicans), cuts in health care and pensions that have already infuriated the radical wing of the Democrats.
BANKS (AND FIAT) FLY
In Europe, the Stoxx index of banks rose by 3,5%. In Milan, the reaction, linked to the excellent result of the Bot auction, was even more pronounced: Unicredit rose by 5,6%, Mediobanca +5,3%, Banco Popolare +9,6%, Intesa +4,4 %. Record increases also for MontePaschi +14%, Pop.Milano +6,3% and Ubi +5,7%. Among the insurance companies, Generali gained 3,7%, Unipol +5,7%, Fondiaria-Sai +3,7%.
In asset management, Azimut advanced by 5,9% after the very good data on inflows in the first quarter. Mediolanum +4,5%. After yesterday's announcement that probably by mid-2014 it will be able to conclude the merger with Chrysler without a capital increase, Fiat has run up by 7,3%. Finmeccanica positive +4,8%. Autogrill was up 4,5% on news that the board will examine the company's spin-off plan as early as May.
TELECOM, THE CHINESE OFFER IN BOD
Field day today for Telecom Italia +1,01%. Hutchison Whampoa's proposal to proceed with the merger of the former incumbent with "3", a move that would allow the Hong Kong group to rise up to 29,9%, reaches the board. The Board will have to choose whether or not to entrust the chairman Franco Bernabè with the delegation to deepen the proposal, which already meets the first no. Marco Fossati, second shareholder of the telephone group with 4,98% of Findim, judged the Chinese offer "a tactical move". Meanwhile, Telco's Board of Directors has abstained from commenting: first we need to see the papers, not the media's indiscretions.
