International tensions remain high. The Chinese president Xi Jinping he asked for a peaceful resolution of tensions linked to the Korean peninsula in a phone call today with US President Donald Trump. TO Milano the FtseMib index is down slightly: -0,09%% just below 20.100 points. Madrid down too. Slightly up Paris e Frankfurt, both +0,1%. London + 0,12%.
The worsening geopolitical environment pushes investors into protection and away from risk. The spread between the Bund and the Btp it rises to 215 basis points, on the highs of the last three years: yesterday the differential between the two reference government bonds was 210.
Il Tesoro this morning it placed all the 10 billion euro of medium and long-term BTPs offered at auction. Assigned 3-year BTPs (first tranche maturing June 2020) for 4,5 billion euro with the rate rising to 0,47% from 0,37% of the previous placement and the 7-year BTP in May 2024 for 2,5 billion with a rate decreasing to 1,69% from 1,90%. Also sold were 20-year BTPs for 2 billion euro and 15-year BTPs for one billion with yields of 2,53% and 2,84% respectively.
The France/Germany spread closed slightly to 74 basis points from 75 yesterday. Latest polls 11 days from French elections the left-wing Eurosceptic Melenchon is making a comeback who could undermine the centrist Macron and challenge the other Eurosceptic Marine Le Pen. Emmanuel Macron and Marine Le Pen are tied for 24%, the former stable and the latter declining by 1%, while the candidate from the left gains 4,5 points to 18,5%, overtaking François Fillon who remains at 18%. .
"After six years of disappointing growth, the world economy is accelerating with a cyclical recovery that promises more jobs, higher wages and greater future prosperity." Thus the director general of the Monetary Fund Christine Lagarde in a speech in Brussels that precedes the spring meeting in Washington by a week. But, adds Lagarde, the threat of protectionism is rising.
The march does not stop PetroleumBrent crude rose 0,4% to $56,5, marking a seventh consecutive day of gains. North Sea crude climbed 0,3% this morning. Bloomberg wrote tonight that Saudi Arabia is in favor of extending output cuts into the second half. The next OPEC meeting is in early May.
Energy stocks take advantage of this. Tenaris advances by 2,5%. The increase is motivated by the US decision to increase i anti-dumping duties against pipe producers for South Korea's energy sector. Mediobanca has raised the rating to Outperform: today the United States decides on the possible imposition of tariffs on Korean pipe producers. Eni 0,6% salt, fine Saipem (+ 1,3%).
The auto sector (+1,1%) is supporting the rise in European price lists. Daimler gains 1% following the presentation of first quarter data: operating profit doubled year on year to 4 billion euros, first quarter Ebit jumps up by 87%. Fiat Chrysler +1%. The French auto parts manufacturer Faurecia gains 1,54% after first quarter sales increase 10%.
Cnh Industrial (+2%) reacts to the latest data on the US agricultural machinery market.
Banks have gotten worse: Unicredit -0,5% Understanding -0,2% and Bpm bank -1%. salt Azimuth, + 2%.
The ordinary shareholders' meeting is in progress Mount Paschi while it was not possible, due to lack of a quorum, to celebrate the extraordinary. CEO Marco Morelli said: "We are negotiating a new plan that will be radically different from the one the bank had presented to the market, with very different funding and loan growth dynamics and therefore with prospects of returning to profits different from that that we presented. Part of the plan is the reduction of the stock of non-performing loans”.
La Juventus, best title of Piazza Affari, celebrates the Champions League victory over Barcelona with an increase of 6%. The Juventus club has a capitalization of around 503 million euros. Since the beginning of the year it has gained 66 percent.
Recover stm: +0,3% after yesterday's drop. The rise continues Autogrill (+1,8%) which yesterday gained 8% after the announcement of the forthcoming corporate reorganisation.
Telecom Italy is up slightly: +0,5%, to 0,8080 euros. This morning JP Morgan expressed its opinion on the stock, bringing the target price to 0,93 euro from 0,90 euro. The rating remains unchanged at Neutral.
Aedes (+2%) announced yesterday that it had signed a contract with Ing and Unicredit for the disbursement of a mortgage on one of its property portfolios.
