The rebound in oil is not enough to support the European stock exchanges, in a sluggish session that accentuates the negative intonation with the red opening of Wall Street. Risk aversion seems to be partly related, at least overseas, to tensions with North Korea, while in Europe attention is more focused on the ECB meeting, in two days' time.
The main lists of the Old Continent closed fractionally lower, with the exception of Frankfurt (+0,18%) supported by the auto sector. Milan stops at 21.737 points, -0,24%, with banks down again. Paris loses 0,72%; Madrid -0,62%; London -0,52%. In New York, the three main listings accentuated the declines during the session, also disappointed by industrial orders which fell by 3,3% in July; it hasn't happened since April 2014. The international picture also remains disturbing. From China, Russian President Vladimir Putin warns: "military hysteria could lead to a global catastrophe". According to Moscow, Kim Jong Un's regime would rather "eat grass" than give up its nuclear program, land sanctions are not needed, diplomacy is needed.
The balance of exchange euro Dollar it continues to lean towards the first, which is also gnawing at something today, however remaining in the 1,19 area. The good tone of the single currency could weigh on inflation in the Eurozone and induce the ECB to exercise the utmost prudence. On the other hand, the Fed is also holding back. For Lael Brainard, voting member of the Federal Reserve's monetary policy committee, we must "proceed with caution on any further tightening of monetary policy, until we are sure that inflation is reaching our target" of 2%.
Gold takes a breather, but remains well above $1300 an ounce, still close to a one-year high at $1335,54. After a long downturn, oil is back up again, Brent +2,14% to 53,46 dollars a barrel. The return to normality in the US refineries and the dialogue between Russia and Saudi Arabia for an extension of the cuts are helping black gold in this recovery.
The session was moderately positive for Italian bonds: the yield on the 10-year BTP fell to 2,06% and the spread with the Bund contracted by 0,92%, to 172.50 basis points. “The Italian economy – says Istat in its monthly note – accelerates supported by widespread growth among the productive sectors and by the increase in employment”.
Returning to Piazza Affari: at the top of the Ftse Mib we find Tenaris, +3,26%, which started its comeback in yesterday's session; Saipem +3,17%. The trio of Eni oil stocks closes, +0,45%. Snam did well, +1,27%, promoted by RBC to 'outperform' from 'sector perform' with a revised target price of 4,75 from 4,25 euro. Positive rebound by Yoox +1,9% and Brembo +1,13%.
The worst stocks are all financials: Counter Bpm -2,28%; Ubi -2,16%; Unicredit -1,8%; Finecobank -1,62%; Mediobanca -1,68%.
Out of the main basket Banca Carige moves against the trend, +1,79%. Profit taking on Caltagirone Editore takes off, -8,4%. Difficult session for Mondadori, -3,08%. The Court of Nanterre today imposed the maximum fine, equal to 100 thousand euros, to the gossip weekly Closer (Mondadori France group) for the publication in 2012 of photos of Kate Middleton topless. Kate and William had asked for 1,5 million euros.
