The draw that put an end to a volatile session came at the end, later the European Commission's announcement on banks. In the afternoon, the Commission announced that Italy has submitted a request to authorize the provision of liquidity support to solvent institutions. And Brussels has decided to give the green light: the support measures consist of a guarantee scheme valid until 31 December 2016 which covers solvent banks. The spokeswoman said that "Italy has notified this measure for precautionary reasons" and that to date "there is no expectation that the need to use it will emerge". THEThe Ftse Mib closed up 1,57%, Paris +1%, Frankfurt +0,71%, London +2,27%.
The assist allowed the banking sector to consolidate gains after a rollercoaster day, also conditioned by the negative sentiment on the sector in Europe due to the result of the American Fed stress tests which rejected the overseas divisions of the German Deutsche Bank and of the Spanish Santander.
Eyes on Unicredit +2,28% who finally celebrates thethe appointment of the new CEO, Jean Pierre Mustier who returns as CEO to Piazza Cordusio appointed by a unanimous board. Even better is Intesa which rises by 3,28%, Bpm +2,31%, Banca Mediolanum stands out among the best with a gain of 5,23%. However, not all institutions managed to catch the rise: Ubi Banca -1,04%, Bmps -2,44%, Banco Popolare -0,19%. Banca Carige -2,71% after the business plan approved last night. The strategic plan for 2020 envisages the sale of NPLs for approximately 900 million by the end of the year and of a second portfolio of similar size in the second half of 2017. However, analysts have judged the targets aggressive and the success of the plan will depend on the success of the sale of the non-performing loans.
However, the best securities on the Ftse Mib are non-banking: Prysmian +6,45%, Buzzi Unicem +5,09%, A2A +4,53% and Yoox +3,48%.
The Btp Bund spread closed down to 146 basis points and a yield of 1,34% after today's auction which recorded yields at new historic lows. The yield on 5-year BTPs reached a new all-time low of 0,33%, down 7 basis points on the previous auction. The yield on 10-year BTPs also declined, placed with a gross rate of 1,35%, down by 7 points compared to the May auction.
In the meantime, a small sign of recovery in inflation in the Eurozone which in June, after four months, rose again, according to Eurostat's flash estimate, to +0,1% compared to -0,1% in May. The final data will be announced on July 15th. However, Italy is not following: provisional data from Istat show June as the fifth consecutive month of deflation, with a drop in consumer prices of 0,4% on an annual basis.
On the macroeconomic front in the US, the usual data on the estimates of initial requests for unemployment benefits was released which resulted in an increase of 10 thousand units to 268 thousand, worse than the estimates. However, the figure is historically low and for the 69th week it remained below 300 thousand. The Chicago PMI, which measures the performance of business and manufacturing activity in the Chicago area, was also below forecasts, however it jumped to 56,8 points in June, the highest since January 2015, from 49,3 of the previous month.
Wall Street opened higher for the third session in a row. Banks in the spotlight after the Fed's stress tests. But the prices were galvanized in the afternoon by rumors about the possible acquisition of the US chocolate producer Hershey, known for its Kit-Kat branded bars, by the snack giant Mondelez.
Oil closed the session down with Brent leaving the field by 1,74% at 49,73 dollars a barrel and Wti by 2,29% at 48,74 dollars a barrel. The euro-dollar exchange rate slips by 0,51% while the pound returns to lose against the dollar and gold remains unchanged at 1320 dollars an ounce.
