After so many emotions, the Tokyo Stock Exchange, unchanged, allows itself a break, useful for absorbing the KO hit caused by the return of the GDP to recession. The Nikkei index is supported by the drop in the yen, 117,31 against the dollar, after the central bank, with a large majority (8 to 1) confirmed the monetary stimuli launched last month. Meanwhile, Prime Minister Shinzo Abe's intention to promote elections within the year is confirmed. The other Asian price lists are weak. Hong Kong
Wall Street is back to grinding new records, awaiting the publication tonight of the minutes of the FOMC meeting of October 29, eagerly awaited to better understand the bullish moods that emerged in the final statement. Meanwhile, the Dow Jones index advanced by 0,23% to 17687,82 thanks to health sector stocks. The S&P 500 by 0,55% to 2.051 points and the Nasdaq, supported by the new hikes by Apple (+1,3%) advanced by 0,67%.
THE MARKETS BELIEVE IN DRAGHI'S QE
The Frankfurt Stock Exchange soars (+1,5%), after the surprising leap in investor confidence in Germany. Madrid also made a big splash (+1,2%). Paris +0,7%, London +0,6%. The Zew index which measures the expectations of analysts and investors in Germany rose to 11,5 in November from -3,6 in October: the consensus was expecting 0,5%. It is the first time the Zew goes up in the last 11 months.
A survey conducted by BofA-Merrill Lynch showed that seven out of ten fund managers expect quantitative easing from the ECB in the first quarter of next year.
In Europe, the best stocks are the so-called "cyclical", i.e. the shares of companies most sensitive to changes in the economic cycle: chemical companies (Stoxx in the sector +1,5%), construction (+1,1% ) and the automotive sector (+1,5%). The euro appreciates against the dollar to 1,254, from 1,245 at yesterday's close.
In Milan, the FtseMib index rose by 0,7%. Stable situation on the government bond market with the 10-year BTP yield slightly up to 2,32% (from 2,30%), spread at 152.
OIL AT THE MINIMUM: -31% FROM JUNE. BUT SALT SAIPEM
After a timid recovery yesterday, crude oil prices have once again taken the downward path. At the close of the Stock Exchange, Brent was traded at 78,6 dollars a barrel, down 0,8%, Wti at 74,8 dollars (-1,1%). This morning, prices are still down: US crude is 74,26, or 31% less than in June.
During the night the attempt to get the US Senate to approve the Keystone XL pipeline between Canada and the Gulf of Mexico failed by a hair's breadth (59 votes in favor against the 60 necessary). Obama, however, was ready to lift the veto.
In Italy Eni rose by 0,6%. Jp Morgan which reduced the target price from 17,4 euros to 15,9 euros, reflecting a cut in the 2014-2016 earnings per share estimates of 7%, 34% and 30%, respectively. Today the CEO, Claudio Descalzi, signed an agreement that regulates the exploration and production activities of the onshore Nebit Dag block, located in western Turkmenistan, strengthening his presence in the country. Saipem +1,2% still on the wave of the maxi deal between Halliburton and Baker Hughes.
Highlights in energy Falck Renewables (+3,4%) after the news that the US SunEdison bought First Wind Holdings for 2,4 billion dollars, completing an expansion in the wind segment in which it was not present.
WELL CEMENT AND CAR. BUZZI SUPERSTARS. FCA STILL UP
The data on German confidence brought fresh air to the more cyclical sectors, depressed by the recession effect. Thus the concrete has awakened. The best blue chip on the Italian list was Buzzi (+6,1%), active on both the German and Eastern markets: Exane BnpParibas raised the target price to 16 euros (+3%). Italcementi +8,9%.
The mood on the car market is also improving, after the promising progress of registrations in Europe. Fiat Chrysler +1,7% after having recorded an increase in sales of +8,4% in October (against the +6,2% of the European average). The share of the group increased from 5,8% to 6%. Pirelli is also progressing (+1,1%).
Finmeccanica instead dropped 0,6% at 7,44 euros, despite the confirmation of Hitachi's offer for Ansaldo Breda and Ansaldo Sts +1,13%.
TELECOM, THE BRAZILIAN GAME WARMS UP
Telecom Italia lost 0,9%. CEO Marco Patuano confirmed that the BoD meeting on Friday 21 November will address the issue of Brazil. The board could mandate the managers to investigate all the strategic options, including the integration between the Brazilian subsidiary Tim Brasil and Grupo Oi. The group has denied that it is studying a capital increase.
LUXURY IN RECOVERY. PICTET JOINS YOOX
Yoox also rose sharply (+4,1%): the founder and managing director, Federico Marchetti (in the photo), increased his stake to 7,8% from 5,3% of the capital. From the communications to Consob on the relevant shareholdings it emerges that the Pictet funds have acquired 2,087% of the share capital of Yoox. The operation dates back to November 14 last year. The stock is back from three consecutive positive weeks (the last yielded a 5% gain), but the year-to-date performance is still in the deep red: -49%. Yesterday morning Banca IMI intervened on the stock, confirming the Buy judgment with a target price of 26,30 euro (potential upside +58%).
Positive scenario also in the rest of the luxury sector, with Moncler and Tod's up by 2,3% and 3,7% respectively. Ferragamo +0,5%. Collective increase for publishing: Mondadori+16%, Rcs+7%, l'Espresso +8%.
UBI DOES NOT EXCLUDE ACQUISITIONS, MPS IS LOOKING FOR PARTNERS
Recovery day for most bank stocks. The Bigs are up (Unicredit +1,4% and Intesa +0,6%) together with the Popolari: Banco Popolare is up by 1,3%, Banca Pop.Emilia +1,8%, Pop.Milano +2,6 %. Ubi Banca marks the pace, -0,09%. CEO Victor Massiah leaves the door open to possible acquisitions by the Lombard bank. “When an opportunity presents itself – he said last night – we will see from time to time whether there will be conditions to be exploited to create value for our shareholders, certainly not for those of others. Potentially we are interested in everything, but for now it is only a conceptual discourse”.
The decline of Monte Paschi (-1,01%) was more significant, penalized by the words of the president, Alessandro Profumo: for the moment, he said, there are no shareholders in sight for a possible aggregation.
