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This article was published on 10 October 2014 at 07:32.
The last change is the 10 October 2014 at 18:45.
Another day of declines for European equity markets, in a session characterized from the auction and BoT conditioned by waiting for the decisions of the agencies Moody’s and DBRS Canadian rating on Italian (only a few minutes ago confirmed the rating). The FTSE Mib index closed down 0.94%, but the budget would have been even worse if Wall Street (follow the indices live) had sketched an attempt to recover after a weak start. Worse went to Frankfurt (-2.12%), which is the lowest for a year. Minor tensions on the other hand, BTP, with the yield of ten-year 2.33% and the spread with Bunds to 144 basis points. The euro has weakened again to get back to $ 1.2630 (euro / dollar exchange and currency converter), while oil has sunk to the lowest level in four years below 90 dollars a barrel.
Demand is strong for treasuries
In such a context, the auction of the BoT has recorded annual increase in gross returns ( 0.301%) after the lows of September (0.271%), but also a strong demand with a coverage ratio increased to 1.7 from 1.64 the previous year. The good reception of investors for Italian securities, moreover, was to be put into account, since the amount of maturing bonds was higher than that emitted (€ 8 billion). Just as was expected a rise in yields, “The last board of the ECB – in fact explains Elia lettuce UniCredit – left a little ‘disappointed the market, after Draghi declined to comment on the extent of the expansion of the budget for’ Eurotower in more requests lower than expected by the banks operation Tltro of September they put pressure on the short end of the yield curve. “
Production in weak recovery
On the macroeconomic side, in August, the production industry has grown in Italy an increase of 0.3% compared to the previous month, but still down 3.7% on an annual basis. During the same period, the production remained stable in France and fell by 0.7% in Finland. In the United States will instead counter the speeches of several members of the Fed (including Plosser, Lacker, Fisher and George), all the while continuing to Washington annual meetings of the IMF and World Bank and starts the meeting of finance ministers and central bank governors central banks of the G20. The real market-mover of the day (which will come, however, to European markets now closed) is represented by the pronouncements of the rating agencies on European countries: S & amp; P on Finland and France, Portugal on Fitch, DBRS of the Netherlands and Spain.
foiled the ‘threat’ Canadian
About Italy DBRS confirmed the rating of “A-Low” and the outlook “negative”, while the judgment of Moody’s (currently ‘Baa2′) are important, since they serve the ECB to determine the rules on the collateral that banks have all’Eurotower to get money. The Canadian rating agency, in particular, was the most significant because it is the best among the four and that’s what keeps time “hanging” our country. A possible downgrade below the threshold “A” could mean more deductions (“haircut” in English) to the detriment of Italian banks who deliver BoT, BTP and the like to get money from the ECB.
A risk to the outlook “stable”
Moody’s, despite being undoubtedly the most “weight”, may paradoxically be less influential, although it can not be excluded in respect of worsening dell’otulook ‘ Italy (currently stable). “The framework outlined by Moody’s already August – Claudia Segre, Secretary General of Assiom Forex – not deviated much from that outlined by the IMF in recent days and we expect a release that is aligned to the fears global growth lower than expected, with a possible worsening of the outlook to negative from stable, but no change in rating Baa2. Certainly the tone as usual will be a direct warning to the government and focused on the need to make efficient and effective action on the reforms, in line with what is stated by the ECB. ”
Fiat in decline the last day on the Milan Stock
Last day to drop in Piazza Affari for Fiat shares (-2.12% to 6.94 euro ), who after 111 years will no longer be treated with this name on the list Milan Sotra after a long 111 years. Italian Automobile Factory Turin leave the place from 13 October to Chrysler Fiat Automobiles (Fca) following the conclusion of the long process that led to the merger with the American company. The new group, which ranks seventh in the constructors’ championship world will be quoted in New York from 9.30 local (15.30 Italian) next Monday (Columbus Day) and soon after on the MTA of Borsa Italian, tracing what happened for the former Fiat Industrial, Industrial become CNH.
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