Eat an Apple and you will cure the disease. Wall Street has relied on Apple's accounts to limit the effect of the coronavirus on the mood of the financial markets. With good results, judging by the rebound in US price lists, galvanized by the performance of the latest iPhone: Apple (+2% after the results) scored the best quarterly in financial history, with profits of 91,3 billion dollars, better than estimates. Revenues increased by 9% and net profits by almost 11%, over 22 billion. The rally in the stock, which has more than doubled in the last 12 months, does not extinguish, as Tim Cook himself underlined, the risk of a slowdown in growth, thanks to the epidemic which, in the meantime, does not stop.
But it has helped to contain fear, as demonstrated by the retreat of safe-haven assets: oil rose this morning, above 60 dollars in the Brent version, correcting both the yen and the Swiss franc downwards. Chinese listings still closed, the Tokyo Stock Exchange rebounds (+0,4%), which among other things appreciates the arrival at the Central Bank of Seiji Adachi, an economist with a reputation for dove
Only Hong Kong remains to bear witness to the emergency: -2,8% on reopening after the break due to the troubled Lunar New Year celebrations. But costs are growing: Starbucks has decided to close over 2.000 stores in China, more than half of the total. According to official figures, the dead in China have risen to 132, while there are over 5.900 confirmed cases of contagion.
The US markets were positive: Dow Jones +0,65%, S&P 500 +1,01%, Nasdaq +1,43%.
The markets are not expecting news on rates from the Fed meeting which will close with the president's press conference. But Jerome Powell may update cash injection plans.
In the meantime, the trade challenge between the various countries is increasingly intense. Boris Johnson, despite strong American opposition, has said yes to Huawei's presence in the UK's 5G.
Russia has announced that it will complete the North Stream gas pipeline on its own, thus overcoming the vetoes placed by Washington on the countries concerned (including Germany).
The Apple effect pushes up futures on the US stock market, which anticipate a positive start this afternoon. Futures on European Stock Exchanges also rose by 0,3%. Piazza Affari also enjoys the title of best stock exchange on the planet, won with yesterday's rally. The markets, having set aside the health emergency, have once again taken into consideration the many positive aspects of the post-vote scenario in Emilia-Romagna: the drop in the spread below 100 basis points, the effect of the drop in yields on high-risk securities lever (first of all utilities), the positive outcome for the banks of the examination by the EBA, until a few years ago a nightmare for our bankers.
Piazza Affari thus achieved the best session of the year (+2,61%), again exceeding 24 points (closing at 24.027,63).
The other European price lists were positive, even if not so brilliant: Frankfurt +0,89%; Madrid +1,29%.
DE MEO WITH RENAULT FROM XNUMXST JULY
Paris +1,07%. Renault has confirmed that it will be Luca De Meo the next CEO of Régie. The manager will take office on July XNUMX, once the non-compete agreement with Volkswagen has been concluded.
London also rose (+0,99%) on the eve of the BoE meeting, the last one led by Mark Carney.
THE BTP BELOW 1%. TODAY'S AUCTION
Record day for the bond market on the eve of the auctions.
The ten-year BTP yield closes the session at 1,03%, after falling below 1% for the first time since November. The spread drops to 137 basis points from 158 on Friday.
The stock market rebound causes some profit-taking on bonds. The yield of the German Bund, after having touched -0,40%, rises to -0,35%.
The abundant supply of European paper also contributed to limiting gains pending the Fed's decisions: the 30-year and 15-year operations of France and Greece as well as the Italian auctions on Ctz and Btpei, awarded with the maximum amount with rates in decline. Today, the placement of 6,5 billion six-month BOTs is expected; on Thursday, instead, 8,75 billion medium/long-term securities will be auctioned.
ENEL CROSSES THE BARRIER OF 80 BILLION IN VALUE, TERNA AND HERA AT THE HIGHEST
To give a measure of the rally in Piazza Affari is the primacy of Enel (+3%), the first Italian company to reach the milestone of 80 billion euros in value, reinforcing its position in second place in the world ranking of utilities. This is not an isolated result: the drop in yields has given wings to the entire sector. A2A (+3,3%) has been at the top since November. Hera (+3,8%) is at an all-time high and Terna (+3,06%) has established its new record, bringing the value of its share to 6,460 euro.
ATLANTIA, BANKS AND TOP MANAGEMENT
Atlantia takes off (+6,38%) which would be ready to reduce its stake in Autostrade per l'Italia and bring in new shareholders if the concession were not revoked by the Executive.
The declining spread also gives sprint to the banks. Unicredit up 2,5%, Intesa +2,2%. Banco Bpm +2%, Mediobanca +3,24%. Banca Mediolanum has decided to no longer classify its investment in Mediobanca as strategic, worried that the presence of Leonardo Del Vecchio in the capital of Piazzetta Cuccia could change its equity balance should it further increase its stake.
Six banks in the euro area, out of 109 monitored, do not have the capital requirements required by the ECB under the SREP and will be forced to increase their Cet1.
Asset management rebounds after Monday's sales: FinecoBank +3,8%, Banca Mediolanum +2,2%, Poste Italiane +4,18%.
Strong Nexi (+4%): new record in view of the deadline for the selection of the adviser who will support Sia in the process of selecting banks for the IPO. Equita believes that "a merger with Sia would be strategically positive for Nexi".
STM NOW WAITS FOR THE APPLE EFFECT
In the spotlight Stm (+3,45%), awaiting the accounts of Apple, which represents just under 15% of its turnover.
Prysmian in tension (+2%): Fidentiis has raised its target from 22,50 to 23,50 euros, confirming the Buy.
Luxury is also recovering. Moncler +3%: MainFirst raises the target price from 41 to 47 euros, strengthening the Buy. Ferragamo +2,6%. Among the mid caps, Elica (+4,5%), Brembo (+4,7%) and Banca Ifis (+4,3%) also shine, promoted by Banca Imi after the recent industrial year.
