The markets are lagging behind after a field day, marked by partial disappointment at the failure to cut rates by the ECB and by the mixed signals coming from the rain in the US quarterly reports.
Mario Draghi in the press conference followed the ECB directorate let it be known that the central bank's bazooka is ready to return to action. But not before September. A partial disappointment for the markets, which were expecting an intervention sooner. Hence a contrasting session for the price lists, initially excited by the indications coming from the Frankfurt board, more "cold" in the end when it was understood that the stimulus package for the economy, still to be defined in detail, will become operational later: Including unconventional measures for which the Governing Council "has mandated the relevant Eurosystem committees to examine the options, including "the size and composition of new securities purchases".
ONLY IN SEPTEMBER THE "UNCONVENTIONAL MEASURES"
All that remains is to wait, without however underestimating the dovish tones of the meeting. The European Central Bank expects key interest rates to remain at or below current levels until at least mid-2020 and "in any case as long as necessary to ensure that inflation continues to converge steadily at lower but close to 2%".
The ball now passes to the Fed, which will announce the almost obvious cut of a quarter of a point in its meeting later this month. Too little to excite the markets grappling with the reading of the quarterly reports from which emerge signs of economic stress. Hence a cautious end to the week, awaiting the first reading of the US GDP for the second quarter, the most important figure to be released today: growth of 1,8% is expected, the lowest in the last two years .
The Asian price lists are weak. The Japan Stock Exchange is starting to close down by 0,4%. The Hang Seng of Hong Kong lost 0,5%, the CSI 300 of the Shanghai and Shenzen lists 0,2%, the Kospi of Seoul 0,6%.
TENSION RISES BETWEEN JAPAN AND KOREA
The clash between Tokyo and South Korea worsens, partly linked to trade disputes over chips, much to Seoul's decision to hold Japan to account for the violence suffered by women during the occupation of the country between 1910 and 1945, a wound still open: on August XNUMX, according to Kyodo News, the government of Shinzo Abe should remove Korea from the list of countries privileged in commercial practices.
The South Korean won weakens to 1,184 against the dollar. Even the yen, the Japanese currency, is losing ground against the dollar.
Closing in the red for the US Stock Exchanges: the S&P500 closed down by 0,53% at 3.003 points, Dow Jones -0,47%. The Nasdaq loses the most, down 1%.
FORD AND BOEING COLLAPSE. APPLE SHOPPING
During the Italian night, the quarterly reports of a large portion of the main lists arrived. The Oscar goes to Alphabet (formerly Google) which rose 7,8% after the Stock Exchange on the wave of profits and turnover (+19%) much better than estimates. Intel also did well +5%, which completed the sale of a business unit to Apple for one billion dollars. Starbuck also rallied (+6%) after the publication of the accounts.
On the other hand, Amazon loses momentum (-2%), despite growing profits in the last quarter. But the costs incurred to speed up deliveries in the USA just one day after the order are weighed down.
There is no shortage of negative notes for the industry: Ford drops by 7,45% after the accounts. The Boeing crisis worsens (-3,70%).
Gold slightly recovered this morning to 1.416 dollars an ounce, slightly recovering.
Oil also rose: Brent at 63,5 dollars a barrel.
THE EURO RISES UP TO 1,150, THE STERLING DOWN
After a day agitated by Draghi's latest openings at the start of a new ultra-expansive monetary action, the euro settles at 1,150 against the dollar.
The pound loses value against the euro, to 0,895: the European Union immediately responded to Boris Johnson's request to reopen negotiations on Brexit with a “no”.
BUSINESS PLACE -0,6%, SHARP DROP IN FRANKFURT
Volatility day yesterday for stocks, currencies and bonds:
Piazza Affari fell -0,6% to around 21.950 points, after having scored the highest value for 22.357 months at 12 points.
The Eurostoxx index was also down by half a point in the final stages after reaching new highs for the year at the start of the session.
Paris (-0,50%) and Madrid (-0,43%) were also negative.
Frankfurt closes in deep red (-1,28%): measures on automotive-related bonds have not yet been announced, the worst sector down by 1,4%. Volkswagen -1,5%, closed the first half with an operating profit of 9 billion, up by 10,3% and with revenues of 125,2 billion (+4,9%). Pre-extraordinary postal targets for 2019 confirmed.
Only the Eurostoxx Banks index ultimately resisted, up 0,3%. In Piazza Affari Unicredit -0,07%, Ubi Banca +0,16%, Mediobanca +0,06%.
BTP ON THE COROLLASTER, THE SPREAD GOES BACK TO 193
The ten-year BTP yield rose to 1,53%, after hitting a new three-year low of 1,38%. The Italy-Germany spread on the ten-year segment stops at 193 basis points after having reached a minimum of 184 points, the lowest level since May of last year, and a maximum of 199 points.
On Tuesday 30 the Treasury will auction 5 and 10 year BTPs and two Ccteu for a total amount between 5,75 and 7,25 billion.
The government, Economy Minister Giovanni Tria admitted yesterday, is not sure of hitting the target of 18 billion in disposals set for 2019, which will involve listed and unlisted companies.
SAIPEM AT THE TOP AFTER THE RECALLS, MONCLER ALSO ON THE RISE
In Piazza Affari, a few blue chips resisted above parity: Saipem +1,76%, which closed the first half with revenues of 4.519 million (3.798 million in the first six months of last year): Poste +0,79% and Nexi +0,78%.
It practically canceled Moncler's initial increase of four percentage points (+0,18%), which recorded a group net profit of 71,3 million in the first half, up 16% compared to the first half of 2018.
Positive closure for Salini (+ 3,5%) with strong growth in Australia and for Mondadori + 1,93% after obtaining the authorization from the French antitrust for the sale of the French subsidiary.
Minus sign for Stm (-2,84%) after the quarterly above expectations, but the company revises its revenue targets for 2019 downwards.
Profits were also taken on cars in Milan: Pirelli-1,79%, Cnh-1,7%, FCA-1,6% and consequently Exor-1,88%.
BIO-ON DISINTEGRATES. MISSES MAIRE
Bio-on disintegrates. (-70%), marking a minimum price of 13,0 euros, with 404 thousand shares traded. On Monday morning the stock was worth 55,5 euros. According to the US Qcm fund, in its responses to requests, the Bologna-based company "confirms the fact that the vast majority of its turnover derives from boxes controlled or affiliated by it", that "production up to 2018 was practically non-existent" and that in 2019 " is limited to that of the San Pietro Terme plant” of which Bio-on “refuses, despite our heavy claims, to confirm volume and sales”. Quintessential adds that it will produce additional documents in the coming days, "many of which are particularly interesting".
Fails Maire Tecnimont (-3,5%), which highlighted a quarterly with declining profits and revenues, as well as a worsening of the financial situation.
Fincantieri -2% after the accounts in line with the 2019 forecasts and the 2018-2022 plan.
