THE CHINESE GDP FREEZES THE BAGS. MILAN -1,05%. BTP IN BRAKING, BANKS IN DEEP RED
The markets, after last week's gains, were hunting for an opportunity to start one realization phase. The reason came from China where this week the slow and perhaps not easy passing of the baton at the head of the party and government officially begins. However, the opening move surprised international observers: the premier, Wen Jiabao, announced a downward revision of the country's growth target down to 2012. The Beijing government is now aiming for a 7,5% GDP expansion %, from a previous target of +8%: it is the lowest growth target since 2004. The inflation target remained unchanged at 4%. In the past, to counter the slowdown in GDP, Beijing practiced an expansionary economic policy. This is unlikely to happen in the coming months, in the midst of a clash between hawks and doves which is at the basis, according to the Financial Times, of the anti-corruption operations which are advising many billionaires to take the route of Hong Kong and Canada.
The reaction of the Western Stock Exchanges was immediate: In Milan, the FtseMib index fell by 1,05%, London lost 0,44%, Paris -0,73%, Frankfurt -1%. The dam of government bonds is holding up better: only a slight retreat of the BTPs with the yield rising to 4,94% and the spread with the Bund widening again to 316 points, from 305 on Friday. Slight decline of the euro against the dollar. However, the banking sector loses momentum: Unicredit drops by 2%, Intesa -2,2%, Mediobanca -2,8%, Ubi -2,6%. The strongest decreases concern Pop.Milano -3,2% and Banco Popolare -4%. Banca Mps also fell, -1,7%, which had started the session on the rise, on the wave of speculation related to the forthcoming, forced, sale by the Foundation.
The momentary end of the BTP rally coincides with a setback for Generali -2,1%. The shares of the two companies on the verge of merger also fell: Fondiaria-Sai -1,9%, Unipol -1,9%. Among the blue chips, only Campari +0,3% and Diasorin +0,2% have a positive balance. In negative territory Fiat -1%, Pirelli -1,7% and Prysmian -1,2%. Under fire Finmeccanica -3,5% (for Repubblica expected losses for the 2011 budget between 1,9 and 2,5 billion euros for write-downs) and StM -2,6%. On the contrary, Ansaldo's leap +2,4% should be noted, awaiting the results on 2011 which will be announced in a few hours, as well as Seat's run after theagreement with bondholders for debt restructuring. Outstanding among the minor stocks are Prelios +6,8%, Sogefi +5% and Falck Renewables +2%, still on the shields. The misstep in the championship also weighs on the stock market fate of the Juventus: -twenty%.
