The Italian financial week starts badly on the bond and equity markets, mainly due to the unexpected Japanese GDP fall, which in the third quarter fell by 0,4% compared to April-June and even by 1,6% on an annual basis, against expectations for an increase of 2,2%. The markets are also awaiting the indications that could arrive today from the governor of the ECB, Mario Draghi, in a hearing in the European Parliament at 15pm.
This morning the BTP-Bund spread opens up at 158 basis points, after closing last Friday at 156. The new width of the gap between the yields of ten-year Italian government bonds and the equivalent German bonds is the result of a jump in purchases, following the data on the recession in Japan, which brought down rates on the Bund, since the yield on the BTP remains stable at 2,35%.
In the same minutes the Milan Stock Exchange travels down 0,8%, to 18.819 points. Among the individual stocks down on the Ftse Mib there is also Telecom Italy (-1,3%, to 0,889 euros), despite the fact that the company has denied the rumors about a capital increase. Sales as well Finmeccanica (-1,7%, to 7,42 euro): today is the deadline for submitting offers on the subsidiary Ansaldo. At the moment the Japanese Hitachi is in pole position.
Lastly, bank stocks were weak after Nomura's analysts cut the target prices of many Italian institutions. At the bottom of the travel list Banco Popolare, down 2,6%, to 9,395 euros.
