The Milan Stock Exchange remains bubbly and closes at +2,1%, after yesterday's strong rise, still dragged along by the banks which remain on the crest of the wave and mark important increases: Mps +10,79%; Bfor +10,41%; UniCredit +9,42%. The Ftse Mib breaks through the ceiling and reaches 18.130 basis points. The hedges, after having pocketed rich capital gains by focusing on the pre-referendum decrease, are now investing heavily in the banks, taking advantage of the convenient prices and the upcoming MPS bailout.
The entire sector at European level is having a brilliant day, on the eve of the ECB meeting and the monetary policy indications that will arrive from President Mario Draghi. Attention is particularly focused on the decisions on whether or not to extend the bond purchase program beyond the March deadline. Spreads still down: -2,93%; 155.50 basis points; yield 1,91%.
Frankfurt stands out among the price lists of the continent: +1,96%, where the star shines Deutsche Bank, considered until a few months ago the great sickness of Europe. However, there has been no talk of the 14 billion dollar fine imposed by the US authorities on the German giant for some time, perhaps because the media's attention was attracted by other news, such as the election of the US president, the Italian referendum and the runoff Austrian. The fact is that in this informative shadow cone the stock, which in September had fallen below the 10 euro threshold, has recovered more than 60% of its value in recent weeks. Positive day for London, +1,81%; Paris, +1,36%; Madrid 0,75%.
Wall Street starts on the sly, but then recovers and after the umpteenth Dow Jones record yesterday, the 11th since Donald Trump's victory, the price list goes back to the top zone. Positive S&P 500, while Nasdaq travels just below parity.
Among raw materials, Brent fell (-0,57%) to 53,62 dollars a barrel. Russian President Vladimir Putin has said he is ready to play his part on the cuts plan, but doubts remain about the effective impact that the reduction decided by OPEC will have on excess supply. However, weekly US data released today indicates crude inventories down more than expected, but gasoline inventories on the rise.
Returning to the Ftse Mib: in light of the banking sector, taking into account that since the summer the securities of the sector have lost 49%, against an average of 13% at the continental level. The Ministry of the Economy denies that applications to the European Stability Mechanism Fund are being prepared; while the loop reports that parliament is working on an 'omnibus' decree for the sector, with first and foremost public intervention on MPS, in compliance with European standards: "either the purchase of subordinated bonds or a recapitalization via onerous loan ”. Tools that could also be valid for other crisis situations”. The decree would also address the issue of cooperative banks and the government could extend the deadline or raise the threshold.
While the MPS stock soars (+10,79%), after yesterday's meetings at the ECB, which would have allowed the bank to buy some time, the board of directors also met today, in the bank's Milan office, to take stock of the situation with the financial advisors JpMorgan and Mediobanca.
At the Unicredit rally, in view of the plan that he will present on Tuesday in London and after the announcement of the exclusivity for the sale of Pioneer. Rain of purchases on Bper, Banco Popolare +6,38%, Bpm +6,29%, Mediobanca +4,80%; Ubi Bank +4,69%
Among the financials, Generali stands out +7,33%. In the other sectors Telecom Italia is well bought +5,08%. Some gains on Luxottica -1,39%, Campari -1,15%, A2A -1,35%, Prysmian -1%.
