The red alert has rained on the Stock Exchanges after the closure of Wall Street. Apple has announced that it has revised downwards its first-quarter revenue estimates in the face of falling sales in China, caused, as the CEO himself, Tim Cook, underlined, by trade tensions with the United States.
The effect was immediate. Apple shares fell 8% in after-hours trading. The market value of the iPhone maker has slipped below 700 billion dollars, or 300 billion well below the highs. And on Wall Street, not many believe that in addition to tariffs, the group suffers from other problems, starting with market saturation.
However, the impact was violent:
TOKYO'S CURRENCY SKYROOMS
S&P 500 index futures were down 1,5%.
Apple's suppliers lose ground in Asia: Foxconn, the Taiwan giant, falls by 2,1%, the Korean Hynix does worse -3,6%. Samsung Electronics – 1,8%.
The Hong Kong Stock Exchange also fell -0,3%, Chinese lists, which started on the rise, closed at -0,1%.
Australia instead rose +1,3% thanks to the devaluation of the local dollar, down together with the Chinese yuan.
The most significant effect regards the sharp increase in the yen, the safe haven par excellence. The Tokyo currency (the Stock Exchange is still closed) reacted to the news with a leap of 3,5% to 104,96 against the dollar before limiting gains to 1,5% at 107,20.
The downsides of the Apple materialized after the close of Wall Street, up at the end of a mixed day: Dow Jones +0,08%, S&P 500 +0,13%. The Nasdaq gained 0,46%.
OIL SAVES WALL STREET BUT THIS MORNING IS DOWN
Much of the merit of the rebound is due to the recovery of the energy sector +2,4%, driving the recovery of oil. But what aroused attention was the thud of Tesla, which opened 2019 by dropping more than 8%, after the disappointing data on sales of the model 3 and the announcement of the price cut in the USA.
TRUMP SUFFERS, BOVESPA TO THE STARS FOR BOLSONARO
The political front is increasingly agitated. Today the Democrats take control of the House and will present the budget which does not include appropriations for the wall on the border with Mexico. Donald Trump, who does not intend to give in, has promoted a meeting with congressional leaders but had to take the hard attack of the former Republican presidential candidate Mitt Romney, who will be sworn in as senator today. The response from the US president was immediate: “I won big, he didn't. I would prefer him to focus on border security ”.
Worth noting is the historic record recorded yesterday evening by the Brazilian stock exchange (+3,5%), also accompanied by a 3,3% jump in the Real, the local currency after the inauguration of the new president Bolsonaro.
THE EU STOCK MARKS HOLD DOWN, MILAN RECOVERS TWO POINTS IN THE FINAL
An uphill start to the year for the Eurozone Stock Exchanges, held back by the slowdown in the economy emerging from the PMI indices. But, thanks to the modest level of activity and the thrust of Wall Street's opening, stock lists first limited the damage then, with the exception of Paris, regained their plus sign. But, on the first day of activity after the end of the Qe purchases, the race for Bunds dominated the markets, in homage to the growing aversion to risk that characterizes the markets.
- Piazza Affari, after losing up to two percentage points in the morning, recovered positions until closing in positive ground: +0,04% to 18.330 points. The effect of the Carige receivership had a (limited) impact only on the banking sector. The extraordinary administration ordered by the ECB is the first measure of this type since the ECB took over the sole supervision of the main euro banks.
- Similar script in Madrid +0,09% and London +0,05%.
- Slightly more tonic Frankfurt +0,24% despite the slowdown in the economy. December, growth in the German manufacturing sector slowed further and new orders dropped to a four-year low. The PMI index fell to 51,5 points, the lowest for almost three years, from 51,8 in November. The threshold of 50 points that separates contraction from expansion is dangerously approaching.
- Paris opens the year with a drop of 0,87%.
RUSH FOR REFUGEES: SCHATZ RETURNS -0,65%
- The bond market is much more dynamic. The German 2017-year yield dropped to its lowest since April 0,17 at 0,65%. The Schatz, the two-year stock, slipped -XNUMX%.
- The ten-year BTP also defended itself, finishing the session at 2,688% from 2,738%, reaching the new low since July 2018
- In 2018, the 1,2-year Bund gained 6%, one of the best performers in the eurozone at the bond level. The BTP with the same maturity has lost 9% but starting from mid-October, in conjunction with the reopening of dialogue between the government and the EU Commission, the stock has achieved a performance of XNUMX%.
- The Btp/Bund spread closes at 253, just above the 251 bps at the end of the year, after an initial flare up to 256 points.
JUVENTUS DOMINATES IN THE PIAZZA AFFARI BUT THE CEO PARATICI HOLDS BACK
Piazza Affari grabbed the draw in extremis after having chased throughout the game. Sorry, for the whole session. But the football metaphor is justified by the performance of Juventus +10,2%. The title of the Juventus club, also because it was supported by the rumors about the possible purchase of Kylian Mbappé (denied by CEO Fabio Paratici) was the only one to record the plus sign throughout the day.
In the end, however, more than half of the 40 stocks in the Ftse Mib index closed with a positive sign. In the wake of the recovery of oil on the US markets, the sprint was driven by the utilities, in line with the trend of the European energy sector (+1,4%). Snam advances 3,17%, Terna + 2,32%. A2A +1,97%. THE BLACK OUT OF CARIGE WEIGHTS ON CREDIT. EXPLOIT OF DO BANK The banking sector does not fully recover (-1,06% the index), traumatized in the morning by the news of the receivership of Banca Carige, suspended before the start of trading. They close in the red around 2% per B for Bank -2% Ubi -1,6%, among potential candidates for a role in the Carige rescue. Among the big players, Intesa leaves 1,7% on the ground. Unicredit -1,2%. It's an exception Bpm bank + 0,98%.
Do Bank+8%. The institute took over 85% of Altamira, an operator active in the credit and real estate asset market. In terms of enterprise value, the deal was valued at €412 million. The controlling stake was purchased by the Apollo funds, the Canada Pension Plan Investment Board and the Abu Dhabi Investment Authority.
FCA WEAK, US DATA TODAY
The automotive limits the damage after a deep red start. Fiat Chrysler -0,8% recovered the morning drift (-3,5%) caused in part by the data reported by the association of American car dealers: registrations would have decreased by more than 2%, a decrease which is attributable to the increase prices and interest rates. Data on registrations in Italy were released after closed exchanges: +.96% in December but the balance for the entire year shows a drop of 3,11%. In the whole of 2018, the FCA group recorded 502.308 unit registrations with a drop of 10,4% and a market share down to 26,3% from 28,43%. Also Ferrari -0,2% recovered from the initial crash -3%. SAFILO TO THE RESCUE, GUBITOSI BUYS OTHER TIM STOCKS In the main cash basket too Prysmian +3,44% and Telecom Italy +1,2%. The CEO, Luigi Gubitosi, bought a further 330 ordinary shares at 48,04 cents. In luxury it stands out Tod’s +3,2% Numerous exploits outside the main list.-Count the time of recovery for sapphire +15%. The capital increase ended with subscriptions equal to 80,7% for 121,1 million. Kepler raised the recommendation to Hold from Reduce, target €0,80. ] shines with a 15% rebound. The stock has lost 75% in value over the past 12 months. Double-digit increases for Mondo TV +17% and biesse +11%, They fly into orbit chl which closes up 42% and, off the official list, Restart + 50%.
