US JOBS GROW, WALL STREET SHAKES
TENSION ON INTEREST RATES, BEAR START IN EUROPE
Was a Ferragosto characterized by sales on open markets. This morning the Tokyo Stock Exchange is down by just under a percentage point an hour after closing. The government's denials weigh heavily rumors reported by the Nikkei Times on an upcoming tax cut for corporate profits. Down, with the exception of Shanghai, the other Asian lists, in the wake of the sharp slowdown of the New York Stock Exchange.
Wall Street closed with the biggest drop since June: Dow Jones -1,47%, S&P 500 -1,43%, Nasdaq -1,72%. The yield on the 2,75-year bond rose to 2011%, the highest since July 11. Intano, after a summer of flat calm, the Vix volatility index recorded a leap of XNUMX%.
La sales rain, accentuated by the mediocre results of Cisco and Wal Mart, was triggered by two data points. Applications for unemployment benefits fell below 320, the lowest since September 2007 (when the effects of the subprime crisis were not yet present). The data is much better than expected. According to the US Department of Labor, the average for recent weeks, considered a less volatile number, saw a drop of 4 claims to 332, marking the lowest level of claims for benefits since November 2007 and the fifth decline in a row. . At the height of the recession, in April 2009, applications for unemployment support were on average 670.
Meanwhile, inflation recorded an increase of 0,2% in July, thus bringing the annual increase to 1,7%, just below the target of 2%, the objective indicated by the Fed. Hence the belief that the tapering, i.e. the reduction of central bank market purchases, is now a matter of weeks. Among today's relevant data, the confidence index elaborated by the University of Michigan stands out: economists fear an over-confidence signal that could fuel new sales.
In Europe, the wait is focused on EU trade balance data and on consumer price trends. At 12 the ECB will communicate the monthly data on the repayment of Ltro loans.
The spread is in the spotlight, dropped to 240 in the final stages of Wednesday's session.
Attention is focused on the German bunds, after the strong 1,82-year rise to XNUMX%.
Big shot, in August, for L'Oreal in China. It was purchased, for $843 million. Magic Holding International, a leading group in China for facial cosmetics.
The decline in US price lists suggests a cautious start on the stock exchanges of the Old Continent, back from six consecutive upward sessions.
Among the topics of the day the possible continuation of the Monte Paschi rally. Nearly 234 million shares changed hands Wednesday compared to a daily average over the last 30 sessions of about 88 million shares. Alessandro Profumo reiterated that there are no foreign investors at the door.
In the spotlight too Brunello Cucinelli, which reached a new all-time high of 24 euros on Wednesday. High volumes traded: more than 123 pieces against an average of 30 over the last 100 days. Since the beginning of the year, the share has risen by around 73% and therefore at current prices the company is worth around 1,6 billion euros on the stock market, ie around 5 times the turnover, 28 times the EBITDA, 55 times the net profit.
