The great race doesn't stop. The markets continue to break records, breaking all sorts of barriers. The Dow Jones (+0,61%) rose beyond the threshold of 25 points, while the S&P (+0,40%) consolidates gains above the peak of 2.700 points and the Nasdaq (+0,18%) those over 7 thousand.
The rally has affected both Asia and Europe, but also Emerging Markets, at their highest level since May 2011. Meanwhile, Tokyo's race continues, but Hong Kong, Taiwan and Chinese stock markets are starting to close with a new rise, as are Sidney and the Korean Kospi. No less brilliant is Piazza Affari, the most free-range market in old Europe. The electoral uncertainty does not seem to frighten the Bull: the latest Sentix poll, moreover, indicates that the possibility of a farewell from Rome to Brussels has dropped, according to the moods of Europeans, to 5%, compared to 20% in a few weeks does. "Many radical politicians have understood that taking sides against the single currency does not bring votes", underline Berenberg's analysts.
Such euphoria fuels the suspicion that the markets have now embarked on a dangerous spiral, reminiscent in a sinister way of the bubble of the year XNUMX. The financial strength of the large Corporations, writes John Plemder in the Financial Times, is so robust as to be impervious to an intervention on the Fed's rates. But the capitals, starting from those accumulated by the big names in technology, are not directed towards investments or research, but towards buybacks, motivated by the personal interest of executives and large managers. A dangerous game that, sooner or later, will lead to the bursting of the bubble. But, as Plender himself notes, no one wants to get out of the game too early, because the best gains come late in the cycle.
TOKYO RISES, EVEN SYDNEY AT THE HIGHEST
Meanwhile, Borsa Weather reports scorching temperatures, in stark contrast to the cold of the season. This morning, in the final session, Tokyo's Nikkei index rose by 0,89%, on the highs of the last 26 years. Seoul gains 1%, Mumbai 0,5%. The rise of the Chinese markets was less extensive: Hong Kong +0,2%, CSI 300 index of Shanghai and Shenzhen stock exchanges +0,3%.
The S&P/ASX200 index of the Australian Stock Exchange rises by 0,7% and reaches its highest level in the last ten years.
US EMPLOYMENT GOES UP. EMPLOYMENT DATA TODAY
Bonds moved little, especially on long maturities: the yield on the 10-year Treasury Bill is 2,45%. Sales on shorter maturities continue: the biennial sells at 1,95%.
Wall Street's rally was also supported yesterday by preliminary data on the labor market. Private companies across the country created 250.000 new jobs in December, 60.000 more than expected. Employment data is out today.
The rise goes hand in hand with the weakening of the dollar: this morning the cross with the euro is at 1,2075, a level not seen for three years.
RECORD BANKS INTEL, MACY'S AND VICTORIA'S SECRET SUFFER
Banks are up: Goldman Sachs +1,3%, JP Morgan +1,4%. Manufacturing also did well: General Motors +3.08%. Down Intel (-1,83%), grappling with the serious breach the security systems of all processors, i.e. the equipment on which the PCs produced in the last 10 years depend.
Macy's (-3,3%) announced 5 cuts and the closure of seven stores. Victoria's Secret thud (-12,3%): the Christmas sales of the US leader in lingerie disappoint.
Brent-type oil closed up 0,3% at $68,1 a barrel on the day US stockpiles data were released, on a three-year high. This morning it trades at 67.95, Wti at 61,94. At Piazza Affari Eni +2,4%, Saipem +2,7%.
TOP BUSINESS PLACE IN EUROPE
The FtseMib index (yesterday +2,77% to 22.512 points) regained strength the threshold of 22 thousand points lost at the end of 2017 thanks to the golden moment of almost all stock exchanges.
The other Stock Exchanges of the Old Continent were positive: Rain of purchases also in Madrid (+1,93%), Paris (+1,55%) and Frankfurt (+1,46%). Cautious London, (+0,32%). Eurozone inflation data is out today.
PMI SERVICES INDEXES AT HIGHEST SINCE FEBRUARY 2011
The data from the PMI indices contributed to giving the prices a boost already in the morning: the economy of the euro zone closed the year with the most solid growth in almost seven years, thanks to the acceleration of services and manufacturing activities in all the main countries. December's composite purchasing managers' index rose to 58,1 from 57,5 in November and slightly above its flash estimate of 58, according to data compiled by IHS Markit. 2011.
Italy is also accelerating: the services index rose to 55,4 from 54,7 in November, closing the nineteenth month in a row above the threshold of 50 which separates contraction from expansion.
SPREAD BELOW 160 BPS, BTP YIELD AT 2.01%
Improve the secondary of the suburbs. The yield of the ten-year BTP falls to 2,01%, the Italy-Germany spread consolidates below 160 basis points (157,70 -2,83%) while around the close the one between Portugal and Germany on the ten-year stretch is worth 150 basis points from a close yesterday at 158 and after a low at 149 during this session. At the end of the session, the Spain-Germany spread was worth 111 basis points (from 116) after a minimum of 109.
Yesterday Spain placed bonds worth 4,25 billion on medium-long maturities with rates slightly up on the December auctions.
Paris instead placed 8,1 billion euros of three OATs, near the low end of the range expected between 8 and 9 billion.
FCA FLIES BEYOND THE 17 EURO BARRIER
It was Fiat Chrysler's day: +8,36%, to a new all-time high of 17,02 euros, supported by a strong increase in trading (35,2 million shares traded against an average of 8,7 million in the last thirty sessions). The break of the 16 euro level contributed to favoring the boom; the favorable day for the automotive sector; a report on the auto sector in which Mediobanca Securities analysts highlight how the US market remains in good health, close to record levels, supported by economic growth and, in perspective, by the effects of the tax reform. Explanations that, in truth, do not seem sufficient to justify this formidable increase. But there are, for now, no fresh rumors about possible extraordinary transactions, and there are no changes in recommendations.
The rally has invested the rest of the Agnelli galaxy: Cnh, promoted today to "buy" by Deutsche Bank, jumps by 3,1%, Ferrari by 4,17%, the Exor holding by 6,86%. Also noteworthy is the leap of Brembo, up by more than 3%.
BANKS AND UTILITIES WAKE UP
The Italian banks also woke up: the sector index rose by 2,9% (+1,64% for the European one).
Well the Bigs. Intesa Sanpaolo advances by 2,5%. The bank has launched a buyback plan for 2,6 billion euro of state-guaranteed bonds issued by Veneto Banca and Banca Popolare di Vicenza. The operation should lead to savings in capital procurement costs of approximately 43 million euros. UniCredit +2,8%.
The former Popolari are even better: Ubi's boom at +5% ahead of Banco Bpm (+3%). The Constitutional Court set March 20, 2018 for the hearing on the reform of the cooperative banks whose deadline of the end of December 2016 for the transformation into joint-stock companies had remained frozen after the appeal presented by the Council of State.
Creval goes against the trend (-1,8%). Carige +1,27%: Malacalza Investimenti, which rose to 20,64% as part of the capital increase, will evaluate whether to further increase its stake in the institute in the next six months while remaining below the 30% threshold.
With the exception of Campari (-0,63%), all stocks in the main basket rose. Utilities rebound, after sales linked to interest rate tensions. A2A (+3,3%) leads the race ahead of Snam (+3,13%), engaged in the final rush for the assignment of the Greek Defsa. Enel +3,15%. Through its US subsidiary Enel Green Power North America for renewables, it has started production at the Thunder Ranch and Red Dirt wind farms in Oklahoma. The investment for the construction of the two parks was 855 million dollars.
THE AUCTION ON FOOTBALL RIGHTS IS UNDERWAY. MEDIASET ROOMS
Spotlights always on for Mediaset (+0,7%). The assembly of representatives of the twenty teams of the Lega Serie A has approved the new tender for the sale of television rights to the football championship for the 2018-2021 seasons. Bids must be submitted by 22 January. The agreement with Vivendi on Premium should be reached before the end of January. Telecom Italia also rose (+0,8%).
ASTALDI SUPERSTAR. IMA AND SAFILO RUN
The list of increases among the possible "prey" of the managers, hunting for securities to feed the savings investment plans (the PIRs), is long. Ima and Safilo are running (+5%) ahead of Fiera Milano and Sogefi (+4%). Tecnoinvestimenti (+3,5%) updated the historical record.
Astaldi +8,04%, second best stock on the Milan list after FCA. With the latest orders won in December, the construction group reached 3,1 billion new orders in 2017.
Tiscali +6,23%. Investment Construction Technology (ICT) has announced that it holds a potential stake of 23,53% and that it can purchase other shares, although as of today it does not intend to acquire control of the company. The shareholder also added that it could propose strategic plans or operations involving the company.
Digitouch picks up speed in Aim (+16,52%). Fintel +6.71%.
A day of construction instead for Trevi (-6,6%) and Bim (-6,8%). Heavy Falck Renewable (-10%), downgraded to "reduce" by Kepler and returning from an impetuous growth in December.
