European stock markets down, in the wake of Wall Street and Asian stock markets, affected by the war on Beijing's spy chips. Piazza Affari has regained the unenviable black jersey among the stock exchanges of the old continent: -1,05% around 20.400. Paris is also in the red -0,40%, already down sharply on Thursday. Frankfurt -0,6%, Madrid -0,37%.
Different this morning the positive data of the Eurozone. In Germany industrial orders grew by 2%, against estimates of +0,8%. In Spain, industrial production grew by 1,2% in August, expectations were firm at +0,5%. Today the attention of the markets will be concentrated on the US jobs data. Above all, payroll trends should be followed.
In Italy, August retail sales grew by 2,2% year on year, much higher than the +0,2% expected by economists. The Italian economy will continue in the current phase of slowdown in the coming months, reads the note on the performance of the Italian economy published monthly by Istat.
Thursday evening, the Italian government gave the definitive figures of the manoeuvre. The deficit/GDP will go from 2,4% in 2019 to 2,1% in 2020, to close at 1,8% in the third year. The president of the ECB Mario Draghi visited the head of state, Sergio Mattarella, at the Quirinale last Monday and the meeting discussed the imminent 2019 budget law.
The ten-year BTP rose to 3,34%, from 3,32% yesterday. Bund yield at 0,56%, highest since May, from 0,54% yesterday.
The euro trades at 1,150 against the dollar, little moved this morning on Asian markets, from +0,3% at the close.
Brent oil closed down 2% last night at $84,6 a barrel, Eni +1,6%. Bank of America Merrill Lynch raises judgment to Buy. Saipem -3,3%.
The chip conflict between the US accusing Beijing of installing spy chips on Apple and Amazon products which use Asian components, also weighs on stm -4,2%, the worst stock on the list.
Luxury, the target of sales due to the rigid attitude adopted by Beijing customs officers towards tourists returning from vacation, is trying to recover. Weak Moncler -0,66%. Kepler Cheuvreux lifts the judgment to Buy.
Tod’s -1%. Credit Suisse, in the report that cuts the target price and the recommendation, states that the decision-making process is still in the hands of the owner Diego Della Valle, the announced reorganization has not materialized.
It bounces Brunello Cucinelli +2,4%. Jefferies raises judgment on Buy.
The landslide continues sapphire-2%, the stock slides to historic lows.
The banking sector is weak. In the final version of the DEF there is a cut in the deductibility of interest expense, from 100% to 86%. The negative impact could be in the order of 650 million euros. There are also measures able to facilitate the disposal of problematic credits.
Ruthless analysis coming from Citi. The spread is hitting credit institutions on two fronts: by cutting capital solidity (Cet 1 ratio) and increasing the risk premium on NPLs, which are thus worth less and are more difficult to liquidate. Many institutions (including UBI which has sold 30% of the BTPs in cash) are thus selling government bonds: so far 17,5 billion euros. Intesa Sanpaolo -3,05% Where's Banca -2,17% Bpm bank -2,66%, Unicredit, -2,99%.
The spread is hitting credit institutions on two fronts: by cutting capital solidity (Cet 1 ratio) and increasing the risk premium on NPLs, which are thus worth less and are more difficult to liquidate. Many institutions are thus selling government bonds, as Ubi has just done.
Also Catholic Insurance -0,1% made small adjustments to the BTP portfolio on the long end of the yield curve and "remains very careful not to increase risks" said CEO Alberto Minali.
Continue the recovery of Astaldi +7,18% after the rebound on the eve (+29%).
