CORRECTION AIR ON THE MARKETS. EMERGENCIES SHAKE. MICROSOFT'S QUARTERLY RECORD. AND THE FIAT SPEEDS UP
Difficult end of week for Asian stock exchanges. The Tokyo Stock Exchange lost almost two percentage points, while Hong Kong and Seoul also fell significantly. The exception is Shanghai where the injection of liquidity by the central bank is starting to take effect.
Meanwhile, the prospect of a further cut in purchases by the Fed accelerates the outflow of capital from emerging markets. Argentina devalued the peso by 13% tonight the steepest drop since 2001, the year of the default. The Turkish lira, following the central bank's decision not to raise rates, has been in a vertical decline for nine days, to an all-time low against the US currency. The Russian ruble also fell to its lowest since April 2009 and the South African rand to its lowest since October 2008.
A complicated session also for Wall Street, conditioned by the negative news arriving from the Chinese economy and by the mixed performance of the quarterly campaign. The Dow Jones fell 1,07%, the S&P 500 1%. NASDAQ -0,57%. Conversely, Treasuries rose with the ten-year benchmark rising to a yield of 2,799%.
After the Stock Exchange, the accounts of Microsoft: revenue rose 14,5% to $24,5 billion versus a forecast of $23,7 billion. The market reaction was positive. Microsoft stock rose 5,5% after the stock market. Facebook -2,5% a few days before its tenth birthday: the social network was born in Harvard on February 4, 2004.
The sharp drop in the US stock market affected the end of the European stock exchanges, supported in the morning by the good data from the Old Continent's PMI. The Tech (Stoxx -2,8%), Media (-1,6%), Insurance (-1,4%) stocks suffer the most. Tech's decline was led by a fall in Nokia -11% which announced for the first quarter of 2014 a sharp drop in the operating profit of the telecommunications networks division. In Milan StM it lost 2,1%.
The London Stock Exchange closed at -0,7%, Paris -1% and Frankfurt -0,9%. In Milan, the FtseMib index fell by 0,7% yesterday. Drastic worsening of bonds too: the yield on 10-year BTPs rose to 3,85%, the spread widening to 214 (+7 basis points). There are "strong indications" that the Italian economy returned to growth in the last quarter of 2013, said Economy Minister Fabrizio Saccomanni on the sidelines of the World Economic Forum in Davos.
THE DOLLAR RISES, EMERGING EMERGENCIES SHAKE
The FOMC meeting is approaching, the pressure of the dollar on emerging currencies is growing. In Turkey, the central bank's decision not to raise rates at its last meeting brought the dollar-Turkish lira exchange rate to all-time highs. The Argentine peso lost 18% against the greenback and the Russian ruble also fell to its lowest level since April 2009 and the South African rand to its lowest level since October 2008. Some experts speak of contagion in emerging markets, something similar to what happened during the Asian financial crisis of 1997-1998.
FIAT, THE RALLY NEVER STOP
Fiat it was the best stock, with an increase of 2,63% to 7,62 euros. Expectations are growing for the details of the Chrysler deal, which will be given on the occasion of the publication of the accounts on January 29 and for the presentation of the industrial plan, scheduled for May.
Shines Tenaris which achieved +1,8% to 17 euro, benefiting from the upgrade received both from Equita Sim (a buy from hold with a target price raised to 20 euro from 18,5 euro), and from Mediobanca Securities (a outperform from underperform with the target price falling to 19,3 euros from 13,6 euros). Finmeccanica +0,5% and Ansaldo +0,2%. Meanwhile, according to Bloomberg, Alberto Bombassei di Brembo -2,40% has officially entered the club of billionaires.
BANKS
The increase in the spread on the 214-year Btp/Bund to XNUMX basis points caused substantial losses: Unicredit fell by 2,5%, Banco Popular -2,6% Mediobanca -1,2%. Alone MontePaschi closed positive (+0,06%).
Understanding -0,81%. CEO Carlo Messina anticipated that the industrial plan, which will be presented in mid-April, has as its objectives the achievement of a return on capital ratio of over 3% over 5-10 years, an increase in revenues and a further cost control. The bank will emerge strengthened by the ECB's asset quality review which will stimulate a wave of integrations among medium-sized banks in Italy.
In red Carige -2,4%: the bank underlined that it did not agree with the judgment of non-compliance of the consolidated and statutory financial statements as at 31 December 2012 and the consolidated interim financial statements as at 30 June 2013 rendered by Consob, reserving the right to appeal the ruling. Generali -0,5% and UnipolSai they emerged almost unscathed from the decline in insurance in Europe.
HERA-AMGA, MERGER AT THE START. SUFFERS FROM CIRC
It should also be noted that the boards of directors of Ivy -1,96% and Amga have given the green light to the framework agreement for the merger by incorporation of the municipal company controlled by the municipality of Udine into the Hera group. In the end, the Municipality of Udine will have 2,98% of the multi-utility in the North East. Cir -3,56%: the banks have asked the holding company to pay 300 million into the subsidiary Sorgenia.
Sales also on Salini Impregilo which lost 3,14% to 4,63 euros. Both the Panama Canal affair and a possible increase in the free float weigh on the stock. It was positioned among the best stocks in the whole of Piazza Affari Bastogi +17,99%. In just a few sessions, the stock gained more than 60%. The company said it is not aware of any events or transactions that could help determine current share prices.
Strong purchases finally up Sand +20,96% after the parent company ArenaAgroindustrie Alimentari notified that sources of financing have been identified in the context of the bankruptcy procedure to ensure continuity of management, albeit limited.
