Risk appetite falls on all markets after the latest worrying news regarding Portugal's leading bank. But in addition to the tribulations of Banco Espirito Santo, the slowdown in industrial production recorded in France and Italy in May weighs on it. The Milan Stock Exchange closed sharply down yesterday: the Ftse Mib index lost 1,9% to its lowest level in the last six weeks. In the morning the loss had reached 2,8%. The data on industrial production weighed of Italy (-1,2% month over month and -1,8% year over year) and France (-1,7% month over month), which raised doubts about the recovery of the European economy,
BOT
On the eve of today's auction of 3,7 and 15-year BTPs, the sovereign debt market experienced a day of high tension. The BTP weakens and the yield rises by 5 basis points to 2,93%, the highest in the last two weeks. Meanwhile, the Bund strengthens and its yield falls close to the historic lows of 1,19% (-3 basis points). The differential between Italy and Germany widens to 173 basis points (+8 basis points), a level not seen for 6 weeks. Portugal's 19-year bond weakens and its yield rises by 3,94 basis points to XNUMX%, back to mid-May levels.
BANKS
The banks recovered positions in the final but still closed down: during the morning they had reached declines of around 4%. Banco Popolare lost -2%, Ubi Banca -1,2%, Banca Popolare di Milano -2,5%. Unicredit loses 1,7%, Intesalo 0,4%. The worst is MontePaschi, -4,5%.
FRESHMAN
Last but not least, bad news for Piazza Affari the stop to the Rottapharm IPO: the pharmaceutical company's shareholders communicated this morning that the conditions for landing on the Stock Exchange no longer exist. Sisal instead confirmed that despite the adverse conditions on the stock markets, the offer is still underway.
TELECOM/MEDIASET
Telecom Italia loses 0,2% after a rising morning. The stock had been supported by the promotion of JP Morgan which raised the recommendation to Overweight from Neutral with the target price raised from 0,88 to 1 euro. Analysts have indicated a series of positive catalysts that are ever closer, such as consolidation both in Italy and in Brazil, as well as improvements in the structure and quality of the fixed-line offer.
Mediaset is among the worst blue chips with a drop of 4,5%. According to Nielsen surveys, advertising sales in Italy fell by 5,2% year on year in May, -4,1% in the first 5 months of 2014. Mediaset closed the month with a drop of 5%.
Completely against the trend, Finmeccanica gained 2,1% to 7,065 euro after the five-year refinancing of the revolving credit line and awaiting the new industrial plan which will arrive within the year and the offers for Ansaldo Breda and Ansaldo STS expected by July. StM -2,3%, Fiat -1,9%. Prysmian-3,7%, Cnh Industrial-3%.
With crude oil falling for the tenth consecutive session, oil companies suffer: Eni -1,6%, Saipem -3%. Erg rose by 1,27% to 11,93 euros, approaching the resistance set at 12 euros. Utilities are resisting the bearish fury well. Enel loses 0,4% on the day in which the board of directors is expected to examine and approve the disposal plan put in the pipeline by CEO Francesco Starace.
Snam -0,2%, Terna -0,7%. World Duty Free loses 2,7% and Autogrill 3,3%. Among the luxury companies, Tod's loses 2%, Luxottica -2%, Moncler -2%. Yoox salt by 0,5%. Among the small caps, Sogefi -6,8%, Engineering -5%.
