BAGS SEE BLACK: MILAN -3%
MADRID HAS ASKED FOR HELP FROM THE EU
Fasten your seatbelts. The markets open yet another decisive week for the eurozone under the banner of maximum pessimism: the Stock Exchanges are convinced that nothing concrete will come out of the next summit in the short term.
In Piazza Affari the FtseMib index plummeted by 2,99%% with widespread declines across the entire price list. Worst than Madrid -2,7%. Down too other European markets: London down 0,86%, Paris -1,82%, Frankfurt -1,74%. Among the sectors, all negative, Banks, Telecom and Utilities are doing worse with drops of more than 1,9%.
The government bond market is also weak pending the Italian auctions. The Italian Treasury will debut tomorrow with the placement of 3 billion Ctz in addition to BTPs maturing in 2016 and 2026. On June 27, 9 billion 185-day BOTs will be placed, while on June 28 it will be the turn of a series of fixed and floating rate issues.
The yield of ten-year BTP it rises to 5,84% from 5,77% on Friday evening, spread with the Bund at 436 (+17 basis points).
Spain today made an official request for financial aid from the European Union for the banking system. In a letter addressed to President of the Eurogroup Jean-Claude Juncker, the Spanish minister Luis de Guindos specifies that the definitive amount of the financial support will be established by 9 July and will have to be sufficient both to cover the needs of the credit institutions and to constitute a 'buffer' of security.
It is no longer an exception to the general decline Ps -2,59%, the only stock up among the blue chips at the start. Today, according to various rumors, the Bank of Italy will authorize the institution to issue Tremonti bonds which will then be subscribed by the Treasury. According to rumors, the issue could reach up to one billion. Monte dei Paschi, which has already issued 1,9 billion Tremonti bonds, would have decided to shelve the alternative Co.co.Bond project, too onerous and with an uncertain outcome, given the market situation which is far from inclined to invest in that of Siena. In addition, Co.co.Bonds impose the payment of a dividend, Tremonti bonds require it only in the event of an operating profit. While awaiting the go-ahead from Bankitalia, the bank has postponed until tomorrow the board of directors on the industrial plan in which it will decide on the sale of the majority of Biver to the Cassa di Asti.
The other banks are heavy. Bpm slips by 2,50%, Unicredit by 4%. Today the board of directors will be held to replace Fabrizio Palenzona on the Mediobanca board. Banco Popolare -3,4%, Intesa drops by 3,2%. Mediobanca -2,07% and Generali -1,86% also fell.
Bad too industry stocks, starting with Finmeccanica which recorded a loss of 3,2%, ahead of Fiat 1%, Fiat Industrial -2,6%. Things are better for Pirelli, which leaves only 1,4% on the ground and for StM, down by 11,5%.
Also declining oil and utilities: Eni down 1,5%, Saipem -1,4%, Enel down 1,8%, A2A -3,5%. The Demi-Edipower merger will be completed by the summer, said the chairman of the management board of A2A Graziano Tarantini. Telecom Italia loses 3,9%.
Strong decline also for Impregilo -2,5%. Marcolin +4,3% bucked the trend among small caps.
