Economies are restarting and the coronavirus is less fearful
There are two elements that characterized the day of the European financial markets and in particular of the Milan stock exchange. The first element concerns the recovery of all the economies of the world in the absence of a substantial increase in contagions. World production is slowly returning to normal and coronavirus seems to be dominated. This belief brings optimism to the stock markets which are seeing the approach of the economic recovery phase.
The second element that characterized the stock exchange day was the presentation of the Recovery Fund project, the aid plan to support the recovery of the economies of the Eurozone.
The 172 billion to Italy from the EU pushes the stock market, but only for half the day
The president of the EU, Ursula von der Layen presented the project for the Recovery Fund. A 750 billion euro fund of which 500 billion in non-repayable and 250 billion in loans to be repaid on very favorable terms. Italy could request up to 172 billion divided as follows: 82 billion as non-refundable appropriations and 91 billion as loans.
It is an overall plan very favorable to Italy. It is no coincidence that the Prime Minister Conte said hotly that it is an excellent sign. The plan, however, to be put into operation must be discussed and approved in the European Council of 17 and 18 June. And Holland has already made it known that it is against the € 500 billion non-refundable and therefore ready to fight to modify it.
The position taken by Holland has dampened enthusiasm and in the afternoon some sales have returned to the European squares, and especially in Milan. Unfortunately, the 172 billion to Italy from the EU pushes the stock market, but only for half the day. And at the end of the session, the Ftse Mib (INDEX-FTSEMIB) blue chips index closed by just 0.3%.
It is indicative that the best title of the 40 with the largest capitalization was Unicredit, demonstrating that the moment of recovery has come for the banks