MILAN – 12:30. A triple effect plays in favor of the renewed vigor of international markets, after a period of high volatility and corrections related to the sell-off on the bond sector: the possibility that eventually Greece and the EU institutions will sign an agreement and that the Federal Reserve – forced actually data from macro little exciting – postpone the rate hike. Added to this is the promise of the ECB to increase the pace of purchases in the next two months, with the effect of reducing the spread and collapse the euro.
So in the operating rooms explains the massive return orders to buy (it It rained many to push up global prices of 72.3 trillion dollars in just one day on Monday, according to the calculations of Bloomberg ). From Athens, the Finance Minister, Yanis Varoufakis, returned to speak with optimism: “We are very close to an agreement,” said broadcaster Hellenic Star TV , also giving a deadline for signing “I think in a week.” Even Prime Minister Alexis Tsipras was unbalanced in a similar way: “After long and difficult discussions, we are close to signing a final agreement that is beneficial for both sides,” said the industrialists. Too bad that a few hours earlier, the EU Commissioner for Economic Affairs, Pierre Moscovici, was much more cautious: “Even we did not.” In short, the ballet of information continues, but this time it seems we can really get to an agreement in the European summit in Riga on 21 and 22 May, after which would share the liquidity problems of Athens and its banks. Concrete, meanwhile, Greece has forwarded to Brussel Group its proposed reform of VAT, which is an important step towards the release of tranches of 7.2 billion of aid.
The European markets, in this context, they move upward in the wake of the good performance of the Asian market. Milan is rising by 1.4%, reinforcing the positive opening. Well the other EU: London adds 0.3%, Frankfurt and Paris soar to 1.8%. Spotlight on the automotive sector, after the ACEA published data growth: + 7% in April in Europe, with double Fca that all traveling to +13.4%.
spread between BTP and German Bund narrows, the yield spread between government bonds stood at 120 basis points from 124 recorded yesterday closing. The yield of the ten-year BTP 1.8%. The performance bond engrave the words of Benoit Coeuré, who announced increased purchases by the ECB “in May and June, due to the low liquidity that exists on the market at this time, only to slow them down in September.” Indications that reverberate also on currency, where the ‘ € is falling: the single currency falls in area $ 1.12, while yesterday, according to the survey of the ECB, was trading at 1.1389.
On the macroeconomic front there’s a mixed message. Eurostat has confirmed that the ‘ annual inflation in April was rising to 0%, after -0.1% in March. In the UK, inflation marked a + 0.2% monthly and 0.1% annually in April: the decline not seen since 1960. Back to the level of the Eurozone, in March, the in trade surplus in goods with the rest of the world was $ 23.4 billion compared to 16.1 billion a year earlier. Finally, on the list of bad news, there is the fall well beyond the expectations of ‘ German ZEW index in May after the surprise decline in April, the morale of the German investors continued to show signs of disappointment the economic confidence index slumped to 41.9 in May from 53.3 in April, against expectations for a smaller decrease to 48-50 points.
In the morning, the Tokyo Stock Exchange ended the session with a sharp rise in the Nikkei index gained share 20,026 points (+ 0.68%). In the US, as mentioned, you go back to look at the intentions of the Federal Reserve: data on the housing sector and the minutes of the last meeting of the Central Bank, which will be published this week, will give further guidance to analysts. Meanwhile, though until recently it was reasoned by a rise in the cost of money (missing since 2006) before or after the summer, now the alternative has been postponed from September to December. Wall Street is just back from new record for both the Dow Jones (+ 0.1% to 18,298.88 points) for both the S & amp; P 500 (+ 0.3% to 2129.2), despite the rise in Treasury yields and concerns about Greece that characterized yesterday. A boost came from the M & amp; to the pharmaceutical, Endo International announced the purchase from US $ 8 billion of Par Pharmaceutical. Today, new starts in April are expected to increase to 975,000 from 926,000 in March.
Finally, with regard to raw materials, the oil is in swing today in Asian markets where exchanges were modest, divided between the abundance of stocks on the market and geopolitical tensions in the Middle East. The price per barrel WTI for delivery in June has led to share $ 60 per barrel, with a gain of 6 cents, while Brent North Sea has lost 14 cents to $ 66.13. L ‘ Gold is down to $ 1,220.50 an ounce, a decrease of 0.4%.
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