The Milan stock exchange is ready for a turnaround thanks to the billions of the Recovery Fund
The presentation of the Recovery Fund has accelerated the prices of stock exchanges in Europe, in particular in Piazza Affari. Although uncertainties remain about its approval.
The European fund for reconstruction was presented yesterday by the President of the European Commission. He plans to make 750 billion euros available to the economies of the Eurozone. Of these, 500 billion will be in grants and 250 billion in loans on favorable terms. Italy will be able to ask for up to 173 billion euros, 82 of which are non-refundable and 91 billion in the form of a loan
Banks in Milan in dust
Now the Milan stock exchange is ready for a turnaround thanks to the billions of the Recovery Fund. It is no coincidence that yesterday among the blue chips the stock that scored the best performance was Unicredit (MIL-UCG), thanks to the drop in the spread. In fact, the presentation of the plan favored the decrease in the differential between the BTP and the Bund which yesterday fell to 190 points. Not only thanks to the purchases on the BTPs but also to the sales on the Bund. The consequence was an increasing influx of purchases on Italian bank securities.
If the trend of the decline in the spread is confirmed, in the next sessions there will be strong purchases on the shares of the credit institutions. But also on government bonds, especially medium and long-term bonds, such as the 10-year and 30-year bonds.
It is on these two sectors that investor purchases will focus most and in today’s session we will see if this scenario will be confirmed.