The hope of a relatively quick Covid vaccine and accelerating oil are buoying the markets today. The European stock markets close another session in progress, after having lengthened the pace in the afternoon thanks to the matching start of Wall Street. Piazza Affari rises to 20.437 points, +1,13% and archives the fourth consecutive day on the rise. The banks remain effervescent and luxury is rekindled. In the rest of Europe: Frankfurt +0,83%; Paris +0,9%; Madrid +0,42%. The greatest leap occurs in London, +2,11%.
The GDP of the United Kingdom collapsed in the second quarter, -20,4%, however less than expected (-20,5%). After -2,2% in the first quarter, the country is in a technical recession, even if the month of June showed significant signs of recovery, +8,7%. In short, in the end there is almost something to celebrate, especially if you bet on further stimulus measures to support the economy overwhelmed by the coronavirus. Zurich is doing well, which appreciates by 1,11% and, outside the main list, sees Sunrise soar by 26,6%, following the offer of the Anglo-American fund Liberty Global. A move that has given an upward thrust to the entire European telecommunications sector.
The westerly winds then arrived to sweep away the last clouds in the afternoon: Wall Street is accelerating, despite the stalemate on the new bill to deal with the pandemic economic crisis. Among stocks, Tesla traded 9% higher after announcing a five-to-one stock split in a bid to make its shares more accessible to employees and investors. Pharmaceutical maker Moderna gained about 1,5% after entering into a deal with the United States to produce 100 million doses of its potential Covid-19 vaccine for about $1,5 billion.
On the currency market, the euro recovered positions against the dollar and traded at 1,179. Gold returns to green and exceeds 1946 dollars an ounce (+1,77%). Oil appreciates, favored by the drop in US weekly inventories which is higher than expected. Brent gains 1,8% and trades around 45,30 dollars a barrel. However, OPEC warns: the drop in world demand in 2020 will be greater than estimated and next year's recovery will face great uncertainties.
The markets thus continue to struggle between optimism and concern, attentive to the progress of the pandemic and hungry for intervention by governments and central banks. Huge vaccine rush and hopes of their imminent arrival fuel appetite for risk Germany's leading institute for infectious disease control and prevention, Robert Koch, today announced that the first coronavirus vaccine could be available as early as the fall, but warned that it may take longer to get the pandemic under control.
In this context, today's race for the big names in Piazza Affari is won by Moncler, +3,64%. Ferrari shines +2,67% (a trader, consulted by Reuters, and cites the sharp increase in the target price by a large US broker to around 226 euros from the previous 153 euros).
Outside the main basket, Ferragamo has an excellent session with 4,17%. The progress is considerable for utilities: Terna +2,69%, Hera +2,29%; Snam +2,22; Enel +1,83%. Inwit recovers +2,46%. In oil, the best is Eni, +1,56%. Banks still on the crest of the wave: Bper +1,28%, which however drops a bit in the final. Profits were taken for Banco Bpm -0,79%, after yesterday's leap.
The spread decreases: 141 basis points (-0,88%), with a yield of the Btp of 0,96%. In today's placement, the Treasury issued 6 billion 12-month bonds maturing on 13/08/2021, achieving a yield of -0,192%, down by 7 cents compared to the previous month's auction. Demand was good, standing at 12,186 billion euros, with a supply-demand ratio of 1,74. The need for liquidity pushes the Treasury to return to the mid-August auctions (after 10 years) and three maturities will be on sale tomorrow to cover short, medium and very long term needs.
Going back to the stock market, investors collect Cnh -2,06%, Saipem -1,9%, Finecobank -1,8%, Unipol -1,07%, after the recent gains.
