Euphoric price lists after the good news about the vaccine developed by Pfizer together with the German BioNTech. Milan flies up by 5%, London by 3.99%, Paris by 5.39%, Frankfurt by 4.8%, Madrid by 6%. The companies have reported that the trial offers better-than-expected results in protecting people from Covid-19 according to the phase 3 study: its effectiveness exceeds 90% in the first 94 subjects who were injected. And the positive results, even if still incomplete, accelerate the advance of the product towards its widespread application.
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On the fixed income market, meanwhile, on the day of placement of the new BTP Futura, the ten-year government bond marks a new all-time low, with a yield falling below the 0.60 per cent threshold for the first time on the secondary MTS government bond market. At the beginning of the session, the yield differential between the ten-year Italian benchmark BTP and the similar German Bund reached 121 basis points, down from 123 points at Friday’s closing, with a yield of 0.57% (who the trend of the BTP / Bund spread in real time).
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The generalized decline in yields does not only concern the Italian market. In Spain and Portugal, 10-year government bond yields fell almost to zero, marking 0.08% and 0.07% respectively. Apart from Greece, whose 10-year yields 0.82%, interest paid on 10-year government bonds throughout Europe is negative. As if to say: investor states must pay to invest in public bonds. Here is the unusual table: Austria -045%, Belgium -0.41%, Denmark -0.50%, Finland -0.43%, France -037%, Germany -0.63%, Ireland -0.30%, Holland -0.53%, Sweden -0.03% and Switzerland -0.51%.
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Usually the yield on a government bond falls when the risk decreases as the economy grows and the strength and reliability of a country increase. This is not the case. These yields do not reflect the health of the European economy, overwhelmed by the second wave of Covid-19, but rather are the reaction to the unprecedented parachute guaranteed by the European Central Bank to support the economies of the eurozone. A necessary measure, but not immune to side effects.
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The stock exchanges and Piazza Affari celebrate Biden
European price lists are also up,
celebrating the election result in the United States. Joe Biden’s electoral victory in the US presidential elections allows us to put a phase of post-vote instability behind us, even if Donald Trump does not resign and threatens legal action. While Tokyo closes 2.1% higher at the highest level for almost 30 years, Milan opens at + 1.6% and exceeds 20,000 points, the highest since the end of August. Also Frankfurt and Paris show increases of over 1.5%.
Who, the performance of stock exchanges and share prices in real time.
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Despite the continued expansion of the Covid pandemic, Investors are betting on a change of climate at the international geopolitical level, in particular on the duty front and trade relations between the US and China. In Milan, financials were in the spotlight but also St (+ 3% after the increase in estimates for the fourth quarter by Infineon) and Saipem (+ 3.3%). Purchases also on FCA (+ 2.5%) and Telecom Italia (+ 2%) while at the bottom of the list are the utilities with Terna and Snam in any case up by 1.5%. On the rest of the price list the As Roma (+ 10%) after theOpa at Friedkin (delistiling failed).
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But plus sign on all markets. On the exchange rate, the euro remains strong against the dollar and stable compared to Friday at 1.188 while it is worth 123.1 yen (from 122.8). The oil comeback with Brent and marks 40.4 dollars a barrel (+ 2.4%).
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