Borsa runs on vaccine and restart: Milan closes at + 3.2%, Frankfurt + 5.7%

The European stock exchanges closed on the highs of the day with a decisive sprint in the final. The enthusiasm for two orders of factors was decisive: the first (encouraging) tests on the vaccine for Covid-19 and the restart of production activities and the progressive easing of lockdowns in many cities and countries affected by the coronavirus, including Italy.

The run of the European stock exchanges

Encouraging news, which helped support the European Stock Exchange indices (here the trend of the price lists in real time): Paris closed 5.16%, Frankfurt 5.67%, London 4.3% and Madrid 4.5%. Lower earnings for Piazza Affari (+ 3.26%), but only for technical reasons: Monday was the day of the coupon detachment for 9 big of the main basket of the Milan Stock Exchange (Generali, Italgas, A2a, Azimut, Eni, Buzzi, Recordati, Prysmian, Saipem), an operation which initially causes a negative impact of 0.86% on the index.

Hope for the vaccine

As mentioned above, optimism regarding progress in the search for a vaccine for Covid-19 was further boosted: Moderna, the American biopharmaceutical group, announced that the first tests on humans have given promising results (the title has earned more than 30% on Wall Street). The New York Stock Exchange, by the way,

The titles in Piazza Affari

A further signal of normalization arrived from Consob, which, starting from Tuesday, suspends the temporary ban on taking new net short positions and increasing the existing short net positions (short selling).
As regards the securities, the worst performances in Milan concern some of the securities of the companies that detached the dividend: Italgas lost 4.12%, A2a 2.8%, Azimut 1.55%, Generali l ‘1.15%.
At the top of the Ftse Mib were placed Fca (+ 8.19%), supported by the rally of the auto sector in Europe (+ 7.5% the Euro Stoxx 600 in the sector) and Unipol (+ 8.63%), after that the CEO Carlo Cimbri has declared that the group will have no difficulty in reaching the 2020 targets and that the will to distribute the dividend remains unaltered.

Decreasing spread and success for Btp Italia

Spread declined sharply after Germany and France clarified their position on the Recovery Fund (with the prospect of 500 billion of financial injection to restart Europe after the crisis caused by the pandemic). The differential between the BTP and the Bund drops to 215 basis points, with the 10-year Treasury rate at 1.66% and the lowest since April 14. The optimism in terms of government bonds motivated both by the good performance of the markets and by the launch of the new BTP Italy, which exceeded requests for 4 billion euros on the first day of assignment to the retail market.

Oil on the Milan stock exchange also performed well

Returning to the Stock Exchange, oil also performed well in Milan (Eni + 1.61%, slowed by coupon detachment, Saipem + 7.16% and Tenaris + 7.61%) in the wake of the continuous recovery of crude oil. Furthermore, the progressive end of the lockdown has favored purchases of travel and transportation company titles, but also those of luxury given the importance assumed by shopping tourism. Moncler (+ 5.38%) and Ferragamo (+ 5.08%), which have lost 19% and 42% respectively since the beginning of the year, rise to Piazza Affari, and airport management companies like Atlantia (+ 2.5%) and, outside the Ftse Mib, Bologna Airport (+ 3.88%). In addition, Enel rose by 3.52% on the main list, while press reports speak of possible assessments to sell its stake in Open Fiber to an investor.