Political tensions remain, but the improvement in the economy certified by the PMI data for the Eurozone comforts the mood of the markets. And so the Bags European countries, after the bad start, turn upwards. The recovery from the opening minimum exceeds half a percentage point.
In Milan the index FtseMib rises by 0,4%, over 19 thousand: at the start it dropped by 0,7%. The price lists of Frankfurt (+ 0,2%) and Paris (+0,1). Slightly down Madrid. London -0,24%.
Private sector and manufacturing growth accelerated surprisingly in the euro area to a six-year high in February, and new job creation hit its highest level since August 2007. The preliminary composite PMI by IHS Markit for the euro zone, considered a good growth indicator, rose to 56, its highest level since April 2011, from 54,4 points in January. In February, the growth of the German private sector accelerated, reaching its highest levels for almost three years, thanks above all to the contribution of manufacturing.
On the contrary, tensions are still high bond. The France/Germany spread fluctuates around 76 basis points, just below this morning's 79 basis points, the highest since 2012. The ten-year BTP yield is stable at 2,19% with a spread at 186, +1 basis points. Meanwhile, the yield on the 2-year German Bund remains close to the all-time low of -0,85%.
Instead, I'm in rally i government bonds Greeks. The yield on two-year government bonds fell by 112 basis points to 7,5%, yesterday morning it was 9,50%. The 7-year yield falls below 30% again, -XNUMX basis points.
We appreciate the dollar to 1,0543, supported by the rise in Treasury yields. At the root of the movement is the strengthening of expectations for a rate hike by the Fed as early as March. Speaking overnight from Singapore, Cleveland Fed President Loretta Mester spoke of "solid foundations" for the US economy, adding that she feels "comfortable" in anticipating raising rates at this time. In this perspective, the market awaits the publication of the minutes of the last meeting of the Fed scheduled for tomorrow.
Il Petroleum it rose by 0,8% with Brent trading at 56,65 dollars a barrel. Oil stocks are on the rise again: Eni +1,8%. According to Equita analysts, the new industrial plan which will be presented on March 1 will foresee an increase in profit and cash flow thanks to production growth, a lower capex budget and higher hydrocarbon prices. Saipem + 0,6% Tenaris + 1,1%.
The behavior of industrial stocks was positive. Especially highlight Brembo: + 2,14% at 64,40 euros. Kepler Cheuvreux sees the action even higher: at 69 euros from a previous target price of 63 euros and confirms the buy rating.
Leonardo +0,6% after announcing that Pakistan's Ministry of Defense has made a purchase of twin-engine AgustaWestland AW139 helicopters.
They also advance Fiat Chrysler (+ 0,5%), StM (+ 0,6%) and Cnh Industrial (+1,1%). New historic record for Recordati (+ 1,1%).
Fireworks on Mondadori (+5,19%) which, at the request of Consob, revealed the estimates for 2019 elaborated by the Board of Directors. The new targets for 2019, expressed considering a homogeneous business base, aim to achieve consolidated revenues of over 1,3 billion euros (1,1228 billion as at 31 December 2015), an adjusted EBITDA of around 115 million (consensus at 106 million, 81,6 million in 2015) and a net profit of 35 million (31 million the Mediobanca Securities estimate, 6,4 million at the end of 2015).
Down instead Il Sole 24 Ore (-1%) after yesterday evening the Board of Directors indicated the guidelines of the industrial plan for 2020 and announced a negative shareholders' equity at the end of 2016.
Weak banks: Unicredit -1,0% Bpm bank -2,0% Ubi +0,3% (Fitch downgraded to BBB-). Understanding +0,5%: Generali (-0,5%) owns 4,492% of the bank, of which 1,085% is in securities lending, according to the bank's website.
Telecom Italy -1,2%. in luxury, Moncler -0,5% Ferragamo + 1,1% Yoox -0,5%. Terna +1,5%, Mediobanca raises the target price to 4,8 euros from 4,6 euros, confirms Neutral.
