Rates towards new declines and bad stock exchanges. Welcome to the world plagued by the coronavirus, insensitive to any financial therapy. When interest rates are zero in America too, Wall Street wonders, betting on a new cut of half a point in the cost of money for March 17-18 and on another one by a quarter of a point. Even the ECB, which has even more modest margins, could cut rates by ten percentage points on 12 March, as well as adopting extraordinary measures to support businesses. But, at least for now, every effort has yielded modest results.
All Asian Stock Exchanges were in deep red this morning, in the wake of Wall Street's losses, which practically wiped out the gains of Wednesday's session, in the wake of Joe Biden's affirmation in the primaries.
THE YEN FLIES, ONLY CHINA LIMITS DISCOUNTS
Tokyo is starting to close with a loss close to 3%. The dollar-yen cross falls to 105,8, a level not seen since September. Goldman Sachs writes that it is realistic to see the exchange rate at 95. The currency strengthens as the central bank of Japan prepares to offer liquidity at super advantageous conditions to banks, so that they can pass it on to small and medium-sized enterprises in difficulty.
Down the other price lists. Sydney leaves 2,5% on the ground. Hong Kong's Hang Seng loses 2%, Seoul's Kospi 2,3%. China's stock markets are down less: the CSI 300 of the Shanghai and Shenzen lists are down by 1,3%, but the week will end on these levels with a rise of 5,3%.
India's financial market is suffering, with the Mumbai Stock Exchange index down by 2,5% and the rupee back to the alarming levels of the end of 2018.
BANKS, PLANES AND CRUISES CRASH IN WALL STREET
Wall Street's balance yesterday was no less heavy: Dow Jones -3,58%, S&P 500 -3,31, Nasdaq -3,1%. The financials are suffering, also because an illness knocked out Jamie Dimon, the number one of JP Morgan.
The outbreak may cost the airline industry up to $113 billion. Google has closed its Seattle office: the giant's employees will work from home.
FUTURES REPORT ABUNDANT -2% IN EUROPE
A very difficult day is preparing for all the markets.
Futures on US markets mark a drop of 1,15%. The contracts on Europe were much worse: Eurostoxx 2,44%, Dax -2,33%, London -2%.
The difficulties of the stock markets can also be explained by the frenetic rush to purchase bonds, especially those of the United States. The 0,81-year Treasury Note hits new all-time lows, in terms of yield, at 3,3%. The fall in interest rates is reducing mortgage payments: a thirty-year home loan pays XNUMX% in the United States, the lowest in historical series.
Gold shines: up 2,2% yesterday, the race continued tonight and this morning we are at 1.677 dollars an ounce. Gold Gains 5,8% Since Last Friday's Close
Brent oil falls for the fourth consecutive day: -1,3%, to 49,3 dollars a barrel, despite the decisions of Opec, which approved a production cut of 1,5 million barrels (one will be charged of the organization, the remaining part of Russia, however still reluctant to sacrifice).
Yesterday in Piazza Affari Saipem lost 5,1%.
THE EPIDEMIC ACCELERATES, ITALY ALLOCATE 7,5 BILLION
The epidemic is also accelerating in Italy – where yesterday evening there were 3.858 infected (700 more than the day before) and 148 dead (but 414 recovered) – try to react. Finance Minister Roberto Gualtieri announced that the government will ask the European Union to increase the 2020 deficit/GDP by 0,35 points, equal to a 6,35 billion euro increase in net debt. The emergency allocation for the epidemic is 7,5 billion euros.
BUSINESS PLACE HAS LOST 15% IN TWO WEEKS
Piazza Affari does not escape the downside: -1,78%, to 21.554 basis points. In two weeks we went from the highs of the last 12 years, reached on Wednesday 19 February at 25.493 points, to the lows of Monday 2 March, at 21.113 points. 4.380 basis points (-15%) evaporated in just a few sessions. The performance of Piazza Affari since January 8,5st has turned into the red by XNUMX%.
CONTINENTAL -10% PUSHES THE AUTOMOTIVE DOWN
The rest of Europe is also in deep red: Frankfurt -1,54%. Continental slumped 10,5% after posting a net loss of 1,2 billion euros in 2019 on a slump in global demand for cars. In Milan, Pirelli sells 2,5%.
Paris -1,9%: Airbus drops 5,44%. According to Bloomberg, the company is considering reducing production of A330neo jets after its largest customer asked to postpone deliveries following a drop in demand for travel.
In London (-1,59%) the shares of the British airline Flybe collapsed. The coupon detachment also weighs on Rio Tinto and Bhp Billiton.
The worst stock exchange is Madrid (-2,58%). Zurich -1,24%.
SPREAD AT 174 POINTS, BTP RATES ABOVE 1% AGAIN
Selling day also on the secondary market: the spread between Italian and German ten-year bonds rises to 174 basis points (+5,26%) after a flare up to 178.
The yield of the BTP marks +1,07% against +0,97% in the morning.
BANKS, RISIKO LOSES APPEAL
The blue chip patrol was sparse and closed with a plus sign: FinecoBank +0,3%, Leonardo +0,7%, Exor +0,5%.
The banking sector was down sharply, penalized firstly by a possible rate cut by the ECB (10 points according to forecasts), which could have a negative impact on profitability, and secondly by the risk of an increase in non-performing loans.
The sales were fierce on Mps (-7,44%) and on the other institutes, bought up until a few days ago with a view to M&A: Pop Sondrio -6,23%, Banco Bpm -4,23%, Bper -3,64, 5,84%. Ubi (-3,81%) and Intesa San Paolo (-4,91%) are also down. Mediobanca was also in the red (-1,55%). Unicredit -XNUMX%.
It's no better for managed savings. Banca Mediolanum withdraws by 5%: the institute enters the Ftse Mib in place of Juventus. Azimut (-4,99%) closed 2019 with a net profit of 370 million euros (+203%). Banca Generali made a loss (-3,94%). Anima Holding sinks (-7,78%).
PRYSMIAN, PROFIT INCREASE IS NOT ENOUGH
Prysmian fell sharply (-3,19%), which yesterday released its 2019 accounts, closed with a sharp rise in net profit, to 296 million euros, against 58 million the previous year. Revenues decreased by 0,9% to 11,519 billion euros, while Ebitda rose from 501 to 907 million euros. The group closed last year with financial debt down from 2,222 to 2,14 billion euros. The BoD will propose to the shareholders' meeting the distribution of a dividend of 0,5 euro, with detachment on May 18th and payment on May 20th.
STM SHOPPING IN FRANCE
The decrease was contained by Stm (-1,13%), which acquired the majority of Exagan, a French company that is an innovator in gallium nitride. Liberum confirmed the title among its top picks in the technology sector, with a buy rating and a target price of 35 euros.
Rain of sales on Amplifon (-3,83%). Equita Sim and Kepler Cheuvreux confirmed their hold rating and lowered the target price on the stock: for the former it drops by 3% to 24 euros, while for the latter it goes from 25 to 23 euros per share. Banca Imi, on the other hand, reaffirmed the target price at 25, maintaining the hold rating.
Black day for Tim (-4,3%) who signed the final agreement with Google anticipated a few months ago.
FERRAGAMO SLIDES TO THE MINIMUM FOR EIGHT YEARS
Luxury is also in sharp decline: Salvatore Ferragamo loses 5% and falls to the lowest level of the last eight years. Moncler drops by 2,14, Brunello Cucinelli -4,5%.
JUVENTUS COMES OUT OF THE BASKET OF THE BIG
The impact of the coronavirus is also felt on football stocks: Juventus (-5,85%) will leave the main basket on March 23; As Roma -5,68%, SS Lazio -4,8%.
Also noteworthy are the heavy losses of Ovs (-9,56%), Astaldi (-7,01%), Fincantieri (-6,91%) and Saras (-6,25%).
