After a flying start, Business Square reversed course and at the beginning of the afternoon moved into slightly negative territory (-0,1%). It gets worse at Frankfurt (-0,2%), Paris (-0,9%) And London (-1,4%).
Meanwhile, sales of government bonds and BTPs continue, under pressure on the secondary market. The yield on Italian ten-year bonds reached 2% at the start of the day, on levels not seen since July 2015, while the spread with the German Bunds it rose to a maximum of 171 basis points, exceeding the threshold reached after Brexit and reaching a record that dates back to more than two years ago.
The Treasury awarded all 5 billion euro of three- and seven-year BTPs with rising rates are up for auction. The average yield on the three-year bond rose to 0,30% from the 0,03% of the October placement, while that of the seven-year bond rose to 1,37% from the 0,83% of the previous auction. The demand for the three-year bond is up to 1,55 times the amount offered while that for the seven-year bond is stable at 1,45 times. Thirty-year BTPs were also sold for 1,312 billion euro, with rates rising to 3,14% from 2,28%.
The day is dominated by waiting for the Standard & Poor's verdict, which tonight, after markets are closed, will update the rating and outlook on Italian debt, today rated BBB-, the lowest investment grade level, with a stable outlook. In an interview in August, the head of sovereign ratings, Maurice Kraemer, had defined the importance of the outcome of the constitutional referendum of 4 December as limited, however, signaling that there was "room for disappointment" on the Italian sovereign rating. Even this morning's report from Credit Suisse tends to soften the weight of the vote on December 4, which, according to the broker, will not lead to a government crisis.
The Trump effect continues on the stock market. Advance Fiat Chrysler (+3,7%): brokers reduce the danger of a Mexican effect for the Italian-Canadian house. Meanwhile, an association of automakers has asked the new US president's transition team to review the rules on the efficiency of car exhausts that could cost them billions of dollars, and is calling for a large-scale overhaul of the Obama administration's auto policies .
The race explodes Soul Holding (+10%): together with Poste Italiane and Cdp it presented an offer for the acquisition of the assets belonging to Pioneer. Poste Italiane will transfer its asset management company to Anima Holding thus strengthening its stake in the asset management company to 24,9% from the current 10,3%.
Meanwhile, bank stocks are retracing. The exception is later The bills, Ubi (+2,2%). Down Unicredit (-0,61%): brokers raised their target prices after the results. SocGen rose to 2,3 euros from 2,2 euros (Hold judgment confirmed), JP Morgan raised to 2,4 euros from 2,3 euros (Neutral confirmed). Kepler Cheuvreux confirmed the Buy judgment, lowering the target to 2,8 euros from 3 euros.
Pop Bank. Emilia little move. The institute closed the first nine months of 2016 with a net profit of 104,7 million, up by 17,9% compared to the same period of 2015 after lower adjustments to loans and an improvement in the revenue component related to trading.
Among the insurance Generali -0,3% UnipolSai +2,4% after the results. Enel +2%: it closed the first nine months with a net ordinary result of 2,7 billion, up by 2,2%, and will reintroduce the interim dividend. A2A +4%: it closed the first nine months with a net profit of 281 million euro. The company has resolved to issue bonds in one or more series or tranches up to a maximum of 1 billion, by the end of 2019.
Campari +1,2%: Rbc cut its target price to 10,1 euro from 10,8 euro, confirming the Outperform rating. Telecom Italy -2,2%: Credit Suisse lowered the target price to 0,9 euro from 1 euro. Neutral judgment confirmed. Buzzi -2%: closed the first nine months of 2016 with a net profit of 180,4 million euros, up 50% thanks to an improvement in demand in Central Europe and Ukraine, while in the USA it was penalized by weather conditions unstable.
In decline Eni (-0,7%) And StM (-0,9%). Among the mid/small caps, Pierrel + 4% Hobbyhorse + 3,3% Falck Renewables +2%. Utilities stabilize after yesterday's falls: Terna + 3,3% Snam + 2,4%.
