“Great is the disorder under the sky: the situation is excellent”. Chairman Mao's maxim can bode well after yet another turbulent day on the price lists, which are now beyond any law other than volatility.
The latest example comes from Wall Street. After an uptrend session, with peaks of 2,9% for the S&P 500 index, a shower of selling caused a trend reversal in the last quarter of an hour. The indices reversed course, and the Dow, like the S&P finished in negative territory with -1,3%, while the Nasdaq closed at -0,44%.
A setback that cannot be explained by the positive data arriving from the US economy: nerves are so tense that the tendency to close operations during the day prevails. Nobody trusts what will happen at the opening of Shanghai.
CHINA, VOLATILITY TO THE STARS
Following the discount rate cut and the reduction in the compulsory bank reserve, Chinese stock exchanges continue to navigate on sight. In the first quarter of an hour of trading, the index first fell by 2,3% and then recovered by 1,2%. In the middle of the session, the Shanghai composite recorded -1,2%. It is difficult to predict the evolution of the session as rumors about disagreements at the top of the party increase: the policy of premier Li Kequiang, advocate of the liberalization of the economy, is under fire.
The Tokyo Stock Exchange rises by 0,4%. The goal is to break the series of six consecutive downward sessions. Sidney -0,5% and Hong Kong -0,2% were weak.
After a rebound linked to the rate cut, the price of oil weakens again: US crude at 39,15 dollars, Brent at 43.15.
MILAN, BEST SEAT SINCE 2012. THE NEW BTP AT THE START
The session of the European lists was of a completely different tenor, having gone from panic to euphoria in a few hours. But the stock exchanges today will have to deal with the sudden evening setback on Wall Street.
In Milan, the Ftse Mib index closed up by 5,9%, erasing in one fell swoop the declines of Black Monday (-6,6%). It was the best session since August 2012.
Frankfurt +5,3%, Paris +4,4%.
The decline of the BTPs is modest: the spread rises above 130 points on the pressure of the Bunds.
The Treasury is preparing for the month-end auctions which will begin tomorrow with the offer of 6,75 billion 6-month BOTs.
There is much anticipation for Friday's offer when the new ten-year benchmark December 2025 arrives on the market, as well as the new Ctz August 2017. In detail, the offer concerns from 1 to 1,5 billion by Ccteu 15/06/2022; from 1,5 to 2 billion 5-year Btp and from 3,5 to 4 billion of the new 10-year Btp 1/12/2025, 2% coupon from 1,50%.
THE CAR STARTS AGAIN. MITSUBISHI GIVES WINGS TO DELCLIMA
Yesterday there was a strong reaction from the car companies: Stoxx index +5,5%. A very violent rebound also for the technological ones (Stoxx +5%).
Fiat Chrysler rose by 6,5%, recovering a large part of the -7,7% on the eve.
According to estimates by the research centre, Jato Dynamics, reported by Reuters, car registrations in Europe (EU27 + EFTA) in July recorded a rise of 9,1% to 1,18 million vehicles.
The producers' association Acea will publish the data for July, together with those for August, in mid-September.
Industrial Driver's License +5,5%. Mediobanca has raised its recommendation to Outperform from Neutral.
Sturdy rebound also for stm +7,3% and by Prysmian + 5%. Finmeccanica +6,5%-
Among the mid/small industrial caps the case of the day is Of the climate shot up 81% following the takeover bid launched by Mitsubishi Electric at 4,44 euros. DeLclima is the company born from the spin off of the activities related to refrigeration and heating in the professional field of De 'Longhi + 5%.
LUXOTTICA: CHINA IS THE 2% OF TURNOVER
Good day for luxury. Yoox + 5,4% Moncler + 5,7%.
Luxottica +6,5%. The world's leading eyewear group said in a statement that the group's exposure to the Chinese market is currently "very limited" and that the devaluation of the yuan has a positive impact on its accounts. “China, including Hong Kong, represents about 2% of the group's turnover, only a part of which is linked to luxury brands,” Luxottica states in particular.
INTESA IS THE BEST BLUE CHIP
The banks took off in Piazza Affari. The Eurostoxx Banks index was the best in the sector with an increase of 5,7%.
Understanding +8,2%, it is the best blue chip in today's Eurostoxx 50 index, itself up 5%. Unicredit + 6,9% MontePaschi + 5,4% Banco Popolare + 7,3% Banca Popolare dell'Emilia Romagna + 9,5%.
Large positive changes for asset management companies and insurance companies.
Azimuth + 6% Mediolanum + 6,2% Generali + 4,6% Catholic +4,3% .
GOOD FOR THE OILS, SOCGEN PROMOTES SNAM
As for oil, Eni it ended the session up 5,4% at 13,85 euros, after closing Monday down 8% at 13,14 euros. The quotation had returned to the February levels.
Tenaris + 3,4% Saipem + 4,5%.
She's back to running Saras with an increase of 8%. In the last three sessions, thanks to the strong turbulence on the stock markets around the world, the stock has lost about 20%.
Among the utilities, Enel 5,9%. Snam +6,1%: Société Générale has raised its recommendation to Buy. Terna + 4,6%.
MEDIASET LAUNCHES THE ULTIMATUM ON SKY
Leap dTelecom Italia + 6%.
The media sector also rebounds, driven by Mediaset +3,75%%. Equita Sim reduced the target price by 8% to 4,4 euro on the stock, confirming the hold rating. The company has decided to shut down the three free generalist channels from 7 September if there is no agreement with Sky to recognize the rebroadcasting rights.
Rcs +1,87% after closing the first half with a net loss of 95,4 million euro, compared to the loss of 70 million in the same period last year. Rcs forecasts for 2015 a consolidated EBITDA that will continue to grow up to the achievement of a margin (before non-recurring charges) of approximately 9% on 2015 revenues.
