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Milan Stock exchange, Draghi's effect on Piazza Affari

Unanimous positive opinions from financial analysts

The news of the assignment entrusted to Mario Draghi by President Sergio Mattarella to form a new government has certainly had a significant impact on the main Italian indicators. On a day that sees all the European lists in green (also influenced by the Asian and overseas closures) the return of the FTSE MIB is over 2%, with a considerable gap compared to the other European exchanges. Even looking at the bond market, the spreads have undergone a considerable narrowing (about 0.10%) continuing a trend that had already been in place since March and bringing the Italian ten-year to about 0.55%. "The market reaction, therefore, has been there and has been positive", explains Michele Morra , Portfolio Manager of Moneyfarm. "Investors seem to like the news. We remember, however, that following the government crisis, spreads had undergone a similar widening and the FTSE MIB a symmetrical underperformance; therefore we understand that probably what investors like is above all the possibility of a resolution. and a return to government stability, also necessary in order not to dissipate the aid deriving from the Recovery Fund. In the medium term, a positive effect could be represented by the ability (or the perception that investors have) of Draghi to exploit his authority and its negotiating capacity at European level to facilitate dialogue on the European investment program, strengthening the relationship between the core countries of the Eurozone".

According to Antonio Amendola , Fund Manager Equity Italy and Europe of AcomeA SGR, "the choice of Draghi as probable premier is the best case that can be had in models. Not only for the standing of the character, undoubted, but for the sense of security and preparation that would project on the European tables in the name of Italy. The difficulty of the Next Generation EU plan arrives now, that is the part of using the funds in a productive way and an executive led by Draghi is the best possible. Once the Chamber test has been passed and the Senate, we will have more clarity on the government team and its type. Investors, especially foreign ones, are still skeptical about the birth of this government, but at the present state it is difficult for it not to happen. Once in office, we expect important flows on our country both on the BTP / Bund spread, but above all on the Equity. The first beneficiaries for a question of liquidity will be the blue chip securities, but in the long run the winners will be the and mid-small caps: they benefit most from investment plans, have fallen behind in terms of performance, have solid fundamentals and are cheap".

The failure of the mediation attempt by the President of the Chamber Fico in giving life to a new political government has produced the most pleasing result for those who invest in the financial activities of our country". This is the comment by Fabio Castaldi , Investment manager of Pictet Asset Management . "Faced with the alternative of recourse to early voting in a very difficult health, economic and political context, the choice of President Mattarella was forced; an institutional government led by a personality with an international reputation of the highest level, politically super partes to face the challenges of the economic / health crisis and to optimize the use of the resources of the Next Gen EU in starting the reconstruction / modernization process of the country".

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