Nervous day for the European Stock Exchanges, which close the last session of the week in the red after leaders summit which, yesterday, partially disappointed expectations. The first agreement of the European Council on the Recovery Fund is in fact the title of a story still largely to be written. The sentiment also worsened in the last half hour of trading driven by Wall Street which has changed mood and is currently proceeding mixed after an upward start.
Frankfurt loses 1,74%, crushed by the record drop in German business confidence: the Ifo index collapsed in April to 74,3 from 85,9 in March. "German business confidence is in a catastrophic state," Ifo chairman Clemens Fuest said in a statement. "The crisis due to the coronavirus is hitting the German economy with full fury." Madrid falls heavily -1,96%, lower losses in Paris -1,3% and London -1,3%.
Piazza Affari is the least worst and closes with a drop of 0,89% to 16.858 points, awaiting the verdict of S&P's, this evening with markets closed. The agency currently has a BBB rating on Italy, only two steps above the junk level, with a negative outlook and a further demotion would do a lot of harm, even if the ECB has anchored Italy by deciding to provisionally accept until in September as collateral also the securities that should slip below the investment grad. The move eased the recent tensions on Italian paper and the spread, after a flare-up in the morning, closed down: -2,98%, 234 points, with the yield of the BTP at 1,87%.
Meanwhile, the American agency Fitch confirmed Greece's rating at BB, but lowered the outlook from positive to stable. On the primary side, the Treasury has assigned all the 3,75 billion euros of the Ctz in November 2021 and the Btpei (Btp indexed to Eurozone inflation) in May 2030 offered at auction with sharply rising rates. Ctz yield jumped to 1,001% from 0,307% of the placement in March and that of the Btpei marked an increase to 1,77% from 0,31% of the placement in February.
In Milan, sales mainly hit the banks: Bper -4,16%; Unicredit -3,07%; Banco Bpm -3,63%; Understanding -2,93%. Bad oil stocks, following the quarterly. Saipem, -3,81% presented the accounts yesterday; Eni -2,62%, did it today showing a sharp decline in revenues and profitability, following the combined effect of the crisis induced by Covid 19 and the fall in energy prices. Against the trend, Tenaris, +0,78%. Black gold is in its third recovery session, after the historical collapse of the beginning of the week. Brent rose by 1,1%, 21,57 dollars a barrel; the Wti June 2020 Future is up 3,5% to 17,08 dollars a barrel.
On the Milanese stock market, the utilities closed a session on the rise: Terna +4,21%; Snam +1,74%; Italgas A2a +1,33%. In cash Nexi +2,13%; Diasorin +2,2%; Amplifon +1,85%. On the currency market the euro is slightly recovering against the dollar at 1,0799. Gold trades down 1% to 1728,35 dollars an ounce.
