European equities are about to end their worst week in three months, weighed down by the slowdown in earnings growth in a market that remains just below two-year highs. In Milan, the Ftse Mib index suffers a more modest drop, one step away from parity at around 22.600 points, in line with Frankfurt. In red Paris and Madrid -0,3%. After four months, growth in industrial production was interrupted in September, down by 1,3% compared to August but up by 2,4% compared to September 2016. The dollar weakened to 1,164 against the euro to the prospect of watering down the US tax reform.
The yields of government bonds in the euro area are recovering. German Bund down 0,40% from weekly low of 0,30%. Btp at 1,85% from the weekly minimum of 1,69%.? This morning at the 12-month Bot auction in which 5,5 billion were assigned, there was very strong demand and a new historic low. In detail, the Treasury has placed BoTs maturing on 14 November 2018 for the full amount envisaged, against demand for over 13,5 billion euro, equal to a coverage ratio of 2,46, the highest recorded in recent years. The simple weighted yield was -0,395%, six basis points lower than the previous auction and a new all-time low.
Brent oil traded at USD63,8 a barrel, down 0,2%. Saipem salt +0,2%. Saudi Aramco has announced an upward revision of investments. SocGen promoted the judgment to Buy with a target of 4,99 euros. Eni -0,2%, Tenaris +0,8%. The negative surprise of Piazza Affari today is represented by Leonardo -20,41%. The company cut its goals to 2017 as far as revenues, gross profit and orders are concerned: the data for the quarter, communicated yesterday evening after the markets are closed, are well below forecasts. 2017 should end with Ebita of 1,05-1,10 billion euros: previous target 1,25-1,30 billion: consensus expected 1,27 billion. The downward revision is almost entirely due to the difficulties of AgustaWestland, the helicopter brand.
Roller coaster for Telecom Italia +1,10%. Immediately after the announcement of the results, the share accelerated downwards by 5% until it was suspended with a minimum price of 0,6670 euros. It is now up slightly to 0,73 euros. Telecom reported a profit in the first nine months of 1.033 million euros, from 1.495 million euros in the same period in 2016, after net non-recurring charges of 233 million euros.
Banks are also up and down. Down after the Banco Bpm accounts -1,6%: the third?quarter closed with 525 million euro of interest margin, up 1,5% year on year, 2,7% compared to the second quarter. Fees were up 8,2% year over year to $486 million (-10% quarter over quarter).
Intesa -0,2%, Ubi Banca +2,8%, Mps -4%, Unicredit +1,7%. The capital increase continues to weigh on Credito Valtellinese -9%. In asset management, another decline for Azimut -3%: this morning Citigroup cut its target to 15 euro. Two stocks that collapsed yesterday rebound. Maire Tecnimont +5%, announced orders for 235 million dollars. The stock lost 20% in three sessions after the publication of results. Since the beginning of the year, the performance is still excellent: +62%. Astaldi +6%, rebounds after -50% in the last two sessions, due to the announcement of the capital increase.
Fails to recover Yoox Net to Porter -1%, after -10% yesterday. In Luxury Moncler +0,9%, Ferragamo -1,1%, Luxottica -0,5%. In positive ground Stm +2,3%. Shipyards +5%. Kepler Cheuvreux raised the recommendation to Buy and Falck +2% which raised the forecasts for 2017.
