Waiting for Moody's verdict on Italian debt tonight with the markets closed, good news arrives from the ECB. Once again it is the governor of the Banque de France, Francois Villeroy de Galhau, who is the spokesperson for the reasons of the doves: "Inflation - he said - is clearly falling", and even if the rate increases "are not pleasant, they are effective , and will bring inflation back towards the 2% target. It still cannot be said – he specified – that this is the opinion of the entire ECB, but unless there are other shocks, rates will no longer rise”. The data on Eurozone inflation in Europe arrived later to support the optimism. In October price growth was 2,9% against 4,3% in September and +10,6% a year ago.
Latest stock market news: Piazza Affari strengthens
The message comforted the Bull, already supported by the drop in oil prices: in Milan the rise gradually picked up speed. The index Ftse Mib +0.8% takes another step towards reaching the top of 29 thousand points (28.500 at 13pm). At these levels the week is starting to close with a gain of +3,50%. The index is about one percentage point away from the record of the year.
Positive notes also for bonds. The ten-year Bund at 2,52%. Ten-year BTP at 4,25%. Spread 173 points, both at two-month lows.
Banking stocks continue to rise, Generali down
On the share price list, the golden season of banking stocks continues, led by Banca Monte Paschi +2,1% but the race is spreading to other sectors: Diasorin recovers, Amplifon and Pirelli accelerate, all above 2%. In negative terrain it stands out Generals –2% after i third quarter accounts. The impact of natural disasters weighs on the accounts. The group said it is fully on track to achieve all the objectives of the strategic plan.
Also in red Interpump -0,9% after the placement of a share of an important shareholder.
In the financial sector, Soul Holding records an increase of 1,7% after the announcement of the binding agreement for theacquisition of Kairos by the Julius Baer group, for a price between 20 and 25 million euros. This move is aimed at strengthening private and institutional customers.
Paws Enel +2,11% waiting for the Capital Markets Day on November 22nd: Morgan Stanley promoted the stock to Equal weight, underlining that the fate of the utility is strictly correlated to the trend of the spread.
Contrasted i Wall Street futures. The Nasdaq is down slightly, the Dow Jones is up. In the pre-market, Gap shines thanks to better-than-forecast data.
THEmacro agenda predicts: Building permits October (14,30pm) – expected 1,450 million; Start of new homes October (14,30pm) – expected 1,350 million.
