The Stock Exchanges are off to mid-August in style. With the sixth positive session in the last seven days, the European stock exchanges today fully recovered the Brexit effect (-11%). The Stoxx 600 index returned to the levels of 23 June, the day of the British referendum. In Milan, the FtseMib rose by 1% today, the Paris Stock Exchange gained 0,7%, Frankfurt +0,8%.
The yield of the 10-year BTP fell to 1,05%, after a bet during the day at 1,04%, a new all-time low. What drove the markets was the turnaround in oil. Brent rose by 4% to 46 dollars a barrel, Wti to 43 dollars (+3%) after an interview with the Dow Jones agency in which Khalid al Falih, Riyadh's oil minister, said that at the Opec meeting initiatives to stabilize the price of crude oil will be discussed on the Algerian agenda in September. The reaction of the securities of the sector was immediate. In Piazza Affari Eni gained 1,4%, Saipem +2,6%, Tenaris +0,8%.
Utilities also made progress (+1% the Stoxx index) In Piazza Affari Enel rose by 1,3%, Snam +1,2%. In the US there has been a real boom in the accounts of the big shopping malls, which bodes well for the trend in retail sales, the most important statistic of the week coming out tomorrow.
Fly Macy's +15% after results higher than expected. But the performance does not prevent the group from closing 14% of stores to increase profitability. Kohl's, another department store chain, also rose by 15% after reporting earnings per share of $1,22 (versus $1,03 expected). The boom has also affected the Chinese e-commerce giant Alibaba +5,7%: revenues grew by 59% in the quarter. On Wall Street, Chevron +0,4% and ConocoPhillips +0,7% rose.
Telecom Italia woke up in Milan +4,4%: Morgan Stanley raised the target price to 1,05 euro from 1,0 euro, confirming Overweight's positive recommendation. Meanwhile, CEO Flavio Cattaneo has asked Sky Italia to re-discuss the agreement signed two years ago: the telephone group is asking for a review of the annual guaranteed minimum of new customers (65 in the current contract). The note with which Palazzo Chigi communicated that it will not oppose the merger between Wind and 3Italia helps the former incumbent. Banks in no particular order: Unicredit gains 2,1%, Intesa +1%, MontePaschi +0,2%. Mediobanca -1% and Pop.Milano -2,3% are down.
