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by Fabrizio Patti 28 October 2019
The agreement between the 27 European Union countries to grant a flexible extension of the Brexit up to 31 January 2020 has not provoked European share indexes. The Ftse Mib index remains rough (+ 0.08%), on the same level as the Cac40 in Paris. On the positive side, the Dax of Frankfurt (+ 0.39%), while the Ftse 100 of London fell (-0.19%).
In Asia the most positive week starts, with indexes rising, with Hong Kong and Shanghai close to +1 percent. To push a note from the US Department of Commerce, according to which the United States and China on Friday would have made great progress in the talks and an agreement on phase one of the agreement would be near.
This prospect determines the strong progress of the best Ftse Mib stocks: Salvatore Ferragamo (+ 3.19%), StMicroelectrionics (+ 1.88%), Fca (+ 1.77%) and Pirelli (1.47% ). However, Moncler (-1.52%), a very exposed company towards Hong Kong, is the site of new clashes over the weekend and has entered a recession, as announced by the Finance Secretary, Paul Chan. Bad for banks and utilities. The stocks with the highest declines are Ubi Banca, Banco Bpm (both -1.25%) and Terna (-0.61%).
To influence the performance of the banks, the prospect of political instability after the elections in Umbria. The spread between Btp and Bund, which started at 132 basis points, rose to 136, with a 10-year Btp return going up above 1% for the first time. Currently the spread is at 133, with yield of BTP at 0.98%.