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This article was published on 10 January 2015 to 08:11 hours.
The sales on bank stocks across Europe have undermined the gains of the stock market indices in previous sessions. Milan and Madrid have lost more than 3%. He weighed the maxi-rise Santander that sank the title (-13%). Piazza Affari fears requests thresholds capital highest Italian institutions. Finally care about the rumors on purchases of government bonds by the ECB that it would exceed the 500 billion euro. pages 6 and 7
Performance bond yesterday and capital ratios at September 30
Black Friday for European stocks that have canceled the effects of the rebound scored the run. Black jersey in Madrid (-3.57%), followed by the Milan Stock (-3.27%). Frankfurt and Paris have lost more than 2%. With the thud of yesterday the Milanese listing stores the first full week of the year with a decline of 5%. There is more than one reason that prompted investors to move away from the actions, in particular by the titles of credit that have weighted the entire European sector. The day began immediately bad for Spanish Banco Santander (one of the heavyweights of the Exchange Iberian) that – after the announcement of a capital increase by 7.5 billion – has been hit by sales until losing in the final 13% . And it started right away downward also for Italian banks after the European Central Bank sent a letter – as publish ed yesterday by the Sole 24 Ore – attributing to each bank its minimum capital ratio to be respected, “on the basis of the financial position and risk profiles, and taking into account the results of the supervisory review and evaluation process. ”
In short, the market has passed the message that the stress tests for European banks are not finished. So, after the session, Banca MPS – that according to the new directions of the ECB (confirmed by the institute of Siena) should have a floor of 14% instead of 7% minimum established by the constraints of Basel 3 -has yielded 8.63 %. On average, for 15 Italian banks supervised by the ECB, the threshold rose by more than three percentage points to 10.5 percent. Siena has weighed on the title then the denial of Santander on a school of interest Rocca Salimbeni.
The sales also hit Ubi Bank (-5.14%), which confirmed the new ad hoc threshold set by the ECB to 9.6%. And have not spared UniCredit (-5.49%), Intesa Sanpaolo (-4%), Banco Popular (-7.47%), Mediobanca (-4.79%), Bper (-6.68%), BPM (-3.51%). Sharp drop for energy (Eni -3.75%, -5.05% Enel, Saipem -3.45%).
The performance of stock markets weighed then rumors about the possible “quantitative easing” that would be on the table in the study of the ECB. The rumors indicate an amount of 500 billion (markets expect more) with purchase of securities rated BBB- up to (would thus excluding those of Greece and Cyprus). The nervousness on “Qe” has been accentuated by the fact that is widening the front of the directors of the ECB opposed to an acceleration towards the purchase of government bonds. Ardo Hansson, governor of Estonia, said that “personally would find it difficult to announce a program to buy bonds including those Greeks in January.”
In the background are then labor data in the US, only a first reading positive. The American economy has created in December 252mila jobs. The unemployment rate fell from 5.8 to 5.6 percent. But the fees remain stagnant: average wages fell by 5 cents to $ 24.57 per hour, 0.2% less per annum. And this is the element that weighs on the stock markets as wages are followed closely by the Fed to guide monetary policy.
In the uncertainty underlying the euro recovered ground against the dollar regaining altitude above 1.18. While the market for government bonds was affected slightly by the turmoil. The return on ten-year Italian rose three basis points from the day before closing 1.88%. The spread with the Bund stood at 139 points. And on Monday, the Treasury is preparing to sell 8 billion euro in BoT to 12 months. In the auction in December, the bond was placed at 0.418% with required 1.8 times the offer. Yesterday was traveling on the secondary market to 0.14%. Which suggests that the auction should be set a new record low.
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