And the day of judgment came. Today, in the early afternoon, Mario Draghi will announce the characteristics of European QE which, if the rumors of the day before are confirmed, should envisage purchases of around 50 billion euros per month for at least a year. According to Bloomberg, however, the plan could arrive at the end of 2016. Given these numbers, it is difficult for the markets to follow the advice of Ewald Nowotny, an Austrian member of the ECB, who invited "not to get overexcited". Meanwhile, the Bundesbank insists on asking that the investment risk fall, at least in part, on the central banks of the individual states.
CANADA CUT RATES, EURO SWINGS
Asian price lists are cautious given the situation. Flat Tokyo +0,07%, slightly up Shanghai and Hong Kong.
On Wall Street, the Dow Jones index rose by 0,23%, the S&P 500 by around 0,5% and the Nasdaq by 0,27%. IBM's 3% drop after accounts and prospects fell short of expectations weighs on the stock market.
The euro underwent strong fluctuations during the day up to a maximum of 1,1629. This morning it is trading at 1,1589 against the dollar, little changed from 1,157 at the previous close. The trend remains bearish but a short-term rebound is not excluded based on the well-known saying "sell on news".
Yesterday, the Bank of Canada surprisingly cut rates to counter the deflationary effect due to the drop in crude oil: the Canadian dollar fell by 2%
Up to a low of 1,2420 against the US currency.
Oil was also weak in the evening, returning below 48 dollars a barrel. The oil price crisis is bearing its first fruits: Bhp Billiton, the Anglo-Australian commodity giant and the first foreign investor in shale oil in the US, has announced a plan that provides for the closure of 40% of its plants to extract shale oil .
Rumors that Draghi's "bazooka" is more powerful than expected pushed up the Old Continent's stock exchanges in the afternoon: Paris +0,4%, Frankfurt +0,2%, Madrid +0,3%.
MILAN SUPERSTAR THANKS TO ENI AND SAIPEM
In Piazza Affari, the FtseMib index closed with a gain of 1,6%. It was the fifth consecutive positive session.
In Milan, the rise is driven by banks and oil stocks, which have moved in the wake of the recovery in crude oil. Eni gained 3,5% ahead of Tenaris +3%. The rise of even stronger Saipem +6,6% after the collapse the day before. Participation in the new alternative Turkish gas pipeline to South Stream is possible.
The yield on government bonds rose: that of the ten-year BTP rose to 1,71% from 1,67% the day before, that of the German Bund to 0,51% from 0,44%. The spread narrowed by 3 basis points to 124.
POPULAR, CONTINUE THE RACE
The race of popular banks continued in the aftermath of the approval of the decree ordering 10 large cooperative institutions to change their statute, transforming themselves into joint-stock companies.
Banca Popolare dell'Emilia Romagna rose by 3,2%, Banca Popolare di Milano + 3,6% Banco Popolare + 9,8% Where's Banca + 3%.
Smaller popular companies are on the rise: Banca Popolare di Sondrio +11% and Valtellinese credit + 10% Popular of Etruria + 27%.
Positive day also for non-cooperative banks: MPaschi bridge + 1,4% Unicredit + 2,4% Mediobanca +1,4%. Negative Understanding -0,3%.
THUD OF A2A. GOLDMAN LIMA ENEL AND TERNA
Utilities have come under the scrutiny of Goldman Sachs. The US investment bank reduced the target price of Enel climb of 1,6% and of Terna +0,11% (sell rating, target price from 3,60 to 3,55).
Promoted instead Enel Green Power (Buy from Neutral) which gains 1,9%. Closes sharply down A2A -3,5%.
The decrease may have been triggered by the start of the sale of the 4,5% package that the two main shareholders, the Municipalities of Milan and Brescia, have been trying to place for some time. Goldman Sachs has meanwhile confirmed the Buy recommendation for the Lombard utility and slightly lowered the target price to 1,01 euro from 1,04 euro.
CITIGROUP PROMOTES STM, PUSHED BY THE DOLLAR
Among industrial companies, StMicroelectronic marks an increase of 1,7%. Citigroup raised its recommendation to Buy from Neutral.
The march of Stm continues +1,7%, on the fifth consecutive day of rise. Citigroup analysts promoted the stock to Buy from Neutral with a target price brought to 7,5 euros from the previous 5 euros. The fall of the euro against the dollar is having a positive effect on the company's accounts: each percentage point of appreciation of the dollar against the euro guarantees the group's EBIT a benefit of 8 million dollars per quarter.
Positive Pirelli +1,3% and CnhIndustrial + 2,2%.
DELISTING EFFECT ON TIMEDIA
Telecom Italy closed the session up 2,5%. The subsidiary Telecom Italy Medium increases by 3,5% pending the possible delisting. The parent company specified in a note that no decision has yet been made.
Among the luxury stocks they shine Tod’s +4,4% and Moncler +2,6%, down Yoox -2,5%.
