Confirmation of the Fed's change of course and progress in negotiations between the US and China continue to fuel the rise in stock markets. The Tokyo Stock Exchange rose, despite the drop in the PMI index (from 52 to 48,5). A positive sign also for the Chinese Stock Exchanges: Hong Kong's Hang Seng rises by 0,7%, the CSI 300 of the Shanghai and Shenzhen lists by 0,9%. Fly Lenovo (+11%) after the strong improvement in the accounts. The recovery of the yuan against the dollar continues: the cross fell below 6,70, close to the lowest level since July 2018.
SAMSUNG LAUNCHES FOLDABLE SMARTPHONE
Up also the Korean Kospi (+0,1%); yesterday in San Francisco Samsung presented the first foldable smartphone.
Wall Street also rose last night after the publication of the minutes of the last Fed meeting: Dow Jones +0,24%, S&P +0,18%, Nasdaq +0,03%.
The US currency strengthened yesterday evening with the reading of the minutes of the central bank: the exchange rate is 1,134. Gold, down 0,2% at the end of the day this morning rose 0,2% to $1.340 an ounce. Brent oil traded this morning at 67,2 dollars a barrel, on the highs of the last three months.
The Morgan Stanley global basket (more than 2.700 stocks from 23 developed and 24 emerging markets) marks the seventh consecutive increase, up 10% since January.
NOT ONLY RATES: THE BIG DEAL WITH EVERYTHING
Today, with the arrival in Washington of Liu He, President Xi's right-hand man in matters of trade, the negotiation between the Big Ones enters the crucial phase: we are not just talking about tariffs but, reveals Reuters, six tables have been opened to discuss a little bit of everything: intellectual property, agriculture, financial services, currencies and non-customs barriers. Donald Trump has confirmed that the negotiations could extend beyond March 1st.
POWELL INSISTS ON PATIENCE
The Fed's minutes confirm that the vast majority of bankers do not believe rate hikes are necessary this year, barring a robust spike in inflation. Everyone thinks it is appropriate to interrupt the ongoing process of returning to normal by the end of the year, ie the progressive reduction of the balance sheet, a slimming cure which translates into a drain on liquidity which will certainly end within the year. The need to be prudent and cautious is also widely shared among the members of the select committee: in the minutes, the word "patience" is repeated many times.
BUSINESS PLACE RISES IN THE FINAL: +0,38%
Optimism has also infected Europe, despite the confirmation of US requests on car duties and the stalemate on Brexit.
The Ftse Mib recovered positions in the afternoon: the index closed the session with a rise of 0,38% to 20.304 points.
Frankfurt's Dax increased more (+0,9%), also thanks to the push of the automotive companies. The new stimulus plan of the Central Bank, according to rumors, should also be addressed to the internal financial institutions of the companies in the sector, those that disburse loans for the purchase of new cars and vans.
MAXIMULTA OF PARIS TO UBS: HE HELPED THE FLIGHT OF CAPITAL
In Paris, the Cac40 marks a rise of 0,7%. Madrid +0,49%. The Zurich Stock Exchange gained 0,5%, although UBS, ordered in France to pay a 4,5 billion euro super-fine, lost 3%.
London advances: +0,69%. In the evening there was a meeting in Brussels between Jean Claude Juncker and Theresa May
TRIA: NO MANEUVER IS NEEDED FOR NOW
The Minister of Economy, Giovanni Tria, believes it is "rather premature" to speak of the need for a corrective maneuver to meet the agreed public finance objectives. “The economic forecasts will certainly be updated in the next Def,” Tria said during question time in the House. The 2 billion set aside in maneuver "at the moment seem more than sufficient" to guarantee the balance negotiations with Brussels.
Turn on the Tv. The yellow-green majority has asked the government to fully re-discuss the project of the Turin-Lyon line in the application of the agreement between Italy and France.
BTP IN LIVE, THE RATING IS APPROACHING
The session of the Italian secondary market was contrasted, weighed on by the disappointing macro data collected by Istat and the expectation of the Fitch verdict on the agenda on Friday evening. The agency currently rates Italian debt at BBB with a negative outlook. On March 15th it will be the turn of Moody's (Baa3, outlook stable).
According to traders, a possible downgrade of Italy by Fitch is partially priced in. Furthermore, the expectation of a forthcoming LTRO confirmed by the ECB's chief economist Peter Praet (“but on less generous terms”) gave the market a bit of a boost.
THE SPREAD AT 277 POINTS. GERMANY BELOW ZERO: -0,36% THE BOBL
The yield spread on the reference 277-year Bund rose up to 9 basis points, 2,86 above the closing levels of the day before. The XNUMX-year yield rose to XNUMX%.
According to traders, a possible downgrade of Italy by Fitch is partially priced in. Furthermore, the expectation of a possible TLTRO manages to give the market a little boost, an impulse which however risks being compromised by Italian political tensions.
In the session, the yield spread on the 277-year Bund of reference rose up to 9 basis points, 2,86 above the closing levels of the day before. The XNUMX-year yield rose to XNUMX%.
Germany placed 3,162 billion of its Bobl at an average rate of -0,36% from -0,29% in the previous auction, and with a bid-to-cover at 1,6 from 1,2.
DIAMONDS BLIND THE BANKS
Weak in Piazza Affari the banks which certainly did not benefit from the results of theinvestigation into diamonds sold through credit branches. The Guardia di Finanza executed a preventive seizure decree of over 700 million euros against these four banks and the two companies Dpi and Idb, diamond brokers who sold through the banking channel. The institutions involved are in red: Unicredit-0,3%. Intesa Sanpaolo -0,4%. Bank Bpm -1,5%. MPS Bank -1,2%.
Fineco Bank also bad -1,4%.
CARS IN RECOVERY: EVEN THE ECB IN THE FIELD AGAINST DUTIES
Recover the auto sector. The ECB could extend its interventions to the sector in the event of an increase in US duties on four wheels.
FCA gains 1,94%, but Brembo leads by +5%. Interest in the sector also drags Pirelli up to +3,8%.
Among the best titles still Juventus (+ 2,77%) before the unfortunate Spanish away match in the Champions League.
DIVIDEND AND THE SHADOW OF THE DELISTING PUSH THE BISCIONE
Effervescent Mediaset (+2,7%). The BoD will propose to the shareholders' meeting the renewal of the proxy for the purchase of treasury shares up to a maximum of 118,1 million, equal to 10% of the share capital within 18 months of the date of the resolution. But the stock was driven by speculative expectations for a possible delisting and the prospect of a maxi-dividend after seven years of fasting: Mediobanca expects a coupon of 0,20 euro (7,2%). Fidentiis estimates 0,22 euros (8%).
Slightly up Tim (+0,3%), which recovers from the lows of the session, waiting for today's Board of Directors which will decide on the industrial plan focused on debt reduction.
In the rest of the list, money on editorials, led by Sole 24 Ore which jumped by 22,6%, while Class editori gained 11,86. Lily +7,7%.
