MERSCH (ECB) GIVES A BOOST TO THE BANKING SECTOR
RECORDS FALL IN PIAZZA AFFARI AND WALL STREET
They fall like skittles Wall Street records: the Dow Jones, for the first time, it rises above 16.000 (+22% since the beginning of 2013), the S&P crosses the threshold of 1.800 (+26% since January). In addition to the Yellen effect, the Chinese reforms that electrified Shanghai and Hong Kong gave a boost to the Bull.
The best title is Boeing: +3% thanks to orders accumulated in Dubai, +83% since the beginning of the year.
Free-range sitting in Milan: All 40 blue-chip FtseMib index are up. The Ftse MiB index +2,14% breaks through 19.000 (final at 19086).
London scores +0,45%, Paris +0,72%, Frankfurt +0,71% and Madrid +1,43%. No reaction from the spread to the PDL split: the differential with the German bund is stationary at 238 basis points and the yield on the 10-year BTP fluctuates around 4,09%.
In addition to the news coming from the financial markets, the words of Yves Mersch, a member of the Executive Committee of the European Central Bank, who said that in the tests that the ECB is preparing to conduct on the quality of bank assets, government bonds will be weighted with zero risk. However, the Bundesbank has asked that in the medium term we move towards the abolition of the treatment of government bonds as risk-free securities.
A breath of fresh air for Italian banks which reacted to the increase: Unicredit rose by 3,23%, Intesa +3,06%, Monte Paschi +0,5%. Banca Popolare di Milano +3,12%, Ubi Banca +3,58%.
Even better the Banco Popolare which runs up 6,11%.
Mediolanum +3,4% today releases an interim dividend of 10 cents. Azimut +0,78%.
New high of the year also for Fonsai +2,16%. Cattolica Ass. +1,7% back to summer 2010 values. Generali +2.2%.
Sharp rise of Saipem +4,41%, driven by Norwegian Seadrill's interest in the offshore drilling business.
Finmeccanica +4,76%: rumors about a mega contract in Norway for Agusta. In the meantime, AgustaWestland itself announced yesterday that Gulf Helicopters has signed an order for 15 AW189 helicopters. For Banca Akros the contract is worth 150 million euro.
Snam gains 2,11%, after the Energy Authority released the new scheme for the tariffs for the transmission of high pressure gas. Société Générale raised the target price to 4,14 euros, confirming the Buy rating.
Also prominently featured Fiat +3,38% and StM +2,71%, Pirelli +2,04%.
World Duty Free +2,9%. Even Yoox +4% reached a new high after the agreement with Brioni.
In the rest of the luxury segment, Luxottica +2,45%, Safilo +6,4%. Tod's +1,79%
