The euro advances, recovering to 1,1543 against the dollar, to its highest level since January 2019 under the pressure of theagreement reached in the European Council, interpreted by the markets as proof of political compactness that goes even beyond the figures of the Recovery Fund. For now, the banks and public securities of Italy and Spain are benefiting above all. Gold accelerates, once again on expectations of new colossal monetary stimuli arriving in the US, once again short of cash awaiting the recovery: 1.856 dollars an ounce, +0,8%, a nine-year high. Silver is also moving, rising yesterday by 7%, on prices not seen for seven years.
THE CONTAGION NOW SCARES TRUMP TOO
The performance of quotations helps to support the mood of the markets, optimistic but cautious also due to the warning from the White House: "Before things get better - said Trump - things will get worse". In the New York area, a government agency estimates that nearly 7 percent of people caught COVID-19 in some form in March-April, about 12 times more than previous health reports indicated. The news does not frighten the markets, on the contrary, it exalts them, because it makes the arrival of other support measures more likely, both by the Federal Reserve and by the government.
TOKYO HOLDS DOWN, US FUTURES UP
Contrasted Asian markets. Tokyo's Nikkei slowed down (-0,4%), held back by negative estimates on the trend in manufacturing activity in July. Hong Kong's Hang Seng on parity, despite the alarm over the expansion of infections. Kospi of Seoul +0,1%. The largest drop is that of the S&P ASX200 of Sydney (-1%): yesterday the new infected in Australia reached a new record figure, with 484 positives in the state of Victoria, the one that generates a quarter of the country's GDP.
China's stock exchanges follow an opposite course and rise: Shanghai Composite +1,4%.
Wall Street futures turned over overnight and are now anticipating a bullish start to the session. The expectation of new stimuli has given new life to cyclical stocks: DowJones +0,6%, S&p 500 +0,17%. The Nasdaq slowed down (-0,81%).
COCA COLA STARTS AGAIN (+2,3%) AFTER THE BLACK MONTHS
In evidence Coca Cola (+2,3%), which revised upwards its consumption forecasts after posting its worst performance in the last 25 years in the second quarter. The closure of bars and restaurants around the world weighed on the drop in sales, which fell by 28% in one year.
Tesla slows down (-4,5%) after a report by JP Morgan which excludes new increases in the immediate future.
Brent oil is down 0,5%, to 44 dollars a barrel, from the highs for the period reached yesterday.
BUSINESS PLACE AT THE HIGHEST SINCE MARCH
Piazza Affari savored the climb to 21 points before putting it into reverse. But, in the wake of the historic agreement on the Recovery Fund, the plus sign dominates in all euro area markets, close to the highest since early March, after EU leaders reached an agreement on the historic economic stimulus package for the states members affected by the impact of the coronavirus pandemic. The euro-dollar gains 0,3%, to 1,149, on the highs of the last 4 months.
GUALTIERI: THE ITALIAN PLAN IN OCTOBER
Milan closes the session with an increase of 0,49%, at 20.732 points. According to the Minister of Economy, Roberto Gualtieri, Italy will present its national recovery plan in Brussels "as early as October" and it will be possible to bring forward 10% of the resources available when fully operational this year.
Frankfurt leads the charge with an increase of 0,92%. Bayer rose 1,7% after a California appellate court reduced its damages due by 74% in a lawsuit over the potentially carcinogenic herbicide Roundup.
UBS LIMITS DAMAGES, PARIS TOASTS WITH COINTREAU
More cautious Madrid (+0,23%) and Paris (+0,22%), where Remy Cointreau shines (+2,16%). In Zurich, the banking giant UBS, on the other hand, contains its losses, recording net profits down by 11% compared to a year ago. Lagging behind outside the Eurozone is London (+0,11%).
THE RATE ON BTPs DROP TO 1,05%
The EU agreement on the Recovery Plan has triggered purchases of BTPs on the secondary market, pushing yields on peripheral paper to new lows. At the end of a decidedly positive day, the 1,05-year BTP, after having touched the new low since the beginning of March with 1,10%, retraced bringing the yield back to the XNUMX area.
The gap between the BTP and Bund rates on the 10-year segment stands at 154 points, from 152 at the start and compared to 159 at the end of the previous day's session.
THE 30 YEAR GERMAN AT AUCTION TODAY
Appointment today on the primary in Germany, with the 1,5 billion euro auction of 30-year Bunds, and in Portugal, where a total of 1-1,25 billion will be offered in two bonds.
Banking fever eased during the session. But the two Big Intesa Sanpaolo (+1,64%) and Unicredit (+1,43%) remain at the top of interest, together with Bper (+3,46%). The board of Ubi (+0,19%) limited itself to acknowledging theadjustment of the offer of Banca led by Carlo Messina. The board prefers to wait for the publication of the supplement to the information prospectus, following which it will meet again to express its opinion on the matter.
PIRELLI SCRUB IN MILAN, THUMP OF LEONARDO
Among the industrialists, Pirelli stands out (+3,74%), the best blue chip ahead of Tenaris (+2,5%). Cnh Industrial (+0,22%) and FCA (+0,23%) were weaker; Leonardo lost ground closing at -2,29%. Buzzi -1,54%, Diasorin -1,44%.
LAZIO TAR PUNISHES TIM, ATLANTIA CONFIRMS MION
Tim -2,7%. The Lazio Regional Administrative Court has rejected the request for suspension of the provision issued in March the Antitrust fined the company 116 million euros for impeding competition in the ultra-broadband market. This is what emerges from a document seen by Reuters.
Enel +0,3%. The Council of State has referred to the EU Court of Justice the decision on the disputes raised by the Italian Antitrust on the conduct of the utility in the electricity sales markets in which it offers the enhanced protection service and on the possible abuse of a dominant position.
Atlantic -0,2%. The shareholders' meeting of Edizione Srl, which owns 30% of the group, confirmed Gianni Mion as chairman and will shortly identify a managing director who will have, among others, "the task of redefining and implementing the group's strategic lines".
