The Bank of Japan is moving, but with Asian phlegm. At the end of the board meeting it was decided to keep short-term rates at -0,1% and the yield close to zero for ten-year bonds. But Governor Kuroda said that the Bank will allow "a greater movement" on the yields of long-term securities and that the purchase policy of ETFs on shares, the most adopted intervention lever to support the stock market, will be reviewed. In short, something has changed, but less than expected by speculation: the 0,052-year bond drops sharply to 0,123% after reaching a maximum of 111,04%. The yen, after the initial rise, stops at XNUMX against the dollar. However, the inflation targets were revised downwards, the purchases of securities remodeled and the indications on the slope of the interest rate curve changed.
Thus began the cycle of central bank meetings. The Fed meeting will begin today, then it will be the turn of the Bank of England, from which an upward adjustment in yields is expected.
The markets take note of the mini turnaround in Tokyo and concentrate, in the US as in Europe, on corporate accounts, waiting for Apple's data to be communicated tonight.
NEW HOLDING OF THE CHINESE ECONOMY
Weak Asian markets. In Tokyo, the Nikkei index drops 0,5%. The Korean Kospi was also down slightly, despite the brilliant results of Samsung (profits +5,7%).
The Chinese stock exchanges are down slightly, while the decline of the yuan against the dollar continues: Hong Kong -0,2%, CSI 300 index of the Shanghai and Shenzhen stock exchanges (-0,1%). Indicators on economic activity in China, released overnight, are lower than expected, both for manufacturing and for services.
TECH SUDDEN STOP: NETFLIX -5,7%
Wall Street is also down. Weighing the sudden coldness of the markets for technology stocks after the crash of Facebook and Twitter. The Dow Jones falls 0,57%, S&P 500 -0,58%. The fall of the Nasdaq (-1,39%) was heavier under the pressure of Netflix (-5,7%) and Facebook (-2,2%).
On the eve of the quarter's data presentation, Apple lost 0,6%. Morgan Stanley writes that high-tech companies are "exhausted."
Meanwhile, futures on European stock exchanges anticipate a start just below parity.
ENI AND SAIPEM SUPERSTAR AT PIAZZA AFFARI
The drop in the dollar favored the rebound of oil (Energy index +0,8%). Brent is traded at 74,5 dollars a barrel this morning, down 0,5%, +0,9% yesterday.
Eni +0,5%. Mediobanca and Société Générale raise their stock targets. Italian analysts confirm the Outperform judgment with a target price that rises to 21 euros from 20 euros. The French colleagues confirm the Buy with a target of 20 euros from 19 euros
Saipem (+1,7%) marks the new highs of the last 17 months at 4,5660 euros.
EUROPE IS LITTLE MOVED, CONFIDENCE IS DROPPING
Holiday session for the European stock exchanges: activity fell significantly, pending the meetings of the central banks, starting from the most uncertain meeting, that of the Bank of Japan. The deterioration in indicators contributed to the slowdown in activity: the index on the economic climate in the Eurozone fell to 112,1 from 112,3 in June. And if consumer confidence remained stable, that of industry fell more than expected. The consumer price index in Germany confirmed a trend just beyond the ECB target of 2% per annum.
MILAN FLAT (-0,06%)
Milan ended the day just below parity (-0,06%, at 21.941 points). The value of trades in today's session amounted to 2 billion euros, down by 424,3 million euros, compared to the 2,43 billion on the previous day.
Similar trend for the other Stock Exchanges of the Old Continent: the Frankfurt Dax showed little movement (-0,5%), the London FTSE 100, stable, the Paris Cac 40 -0,4% and the Spanish Ibex 35 -0,1 ,XNUMX%.
ITALIAN AUCTIONS WELL. UNDER PRESSURE THE BUND
Busy day for fixed income. The good response of the market to the auction of medium-term securities was partially thwarted by the upward trend in yields on the German Bund which pushed the entire sector upwards.
The spread rose to a maximum of 239 points before falling back to 232 during the auctions and closing at 235 in parallel with the bad performance of the Bund.
In any case, the Treasury passed the test of the expected medium-long term placements at the end of July with flying colors, with the assignment of the maximum of the expected range (between 5,5 and 7,5 billion) and strong demand
The new December 2028 BTP offered for 4 billion, which detaches a coupon of 2,8% against 2% of the current February 2028 benchmark, was placed at a gross yield of 2,87% from 2,77% at the end auction June on February 2028 title.
BANKS, THE REVENGE OF MPS AND CARIGE
The banks were positive, with the national index up by 0,47%, compared to a stable European Stoxx. In a thin market, purchases of securities considered cheap stand out: Monte Paschi +5,04% and Carige +4,86%.
On Bper (-1%) Banca Akros cut its rating to "neutral" from "accumulated" after the stock run in June. Intesa advances by 0,82%, Generali +0,77%.
VIVENDI DEVALUATE TELECOM ITALIA
Telecom Italy +0,61%. Vivendi has written down its stake in the company by 512 million, of which it is the largest shareholder with approximately 24%. As the note on the French group's half-yearly accounts indicates, "despite the expected improvement in Telecom Italia's valorisation prospects, in the event that the 2018-2020 business plan unanimously adopted by the previous Telecom Italia board of directors were actually implemented by the new board, Vivendi has written down the stake in TI mainly to take into account the risk of execution of this industrial plan, in the light of Vivendi's lesser power to participate in decisions relating to financial and operational policies”.
After a brilliant start (+3% in the morning) Mediaset retraces -0,3% after the presentation of data for the quarter better than expected: operating profit down by 78% to 3,8 million euros.
Stm dropped sharply (-2,7%) in line with the decline of European tech.
LESS USEFUL FOR LEONARDO, TIP RISES TO PRYSMIAN
Among industrialists, however, a positive session for Leonardo (+1%), awaiting the results released after the stock exchange was closed: revenues up (5.59 billion against 5,5), profits down (from 213 to 106 million) against extraordinary costs . During the half-year, orders were acquired for 4,6 billion.
Fiat Chrysler (+1,47% to 14,65 euros) is slowly approaching the levels prior to the profit warning. Cnh Industrial (+0,06%) confirms the highs reached on Friday after the quarterly.
Prismian -0,45%. Tip and Club Tre increased their stake in the cable company in the course of the successful capital increase.
Autogrill (-3,70%) loses last Friday's gains, widening the loss since the beginning of the year to -17%. Sales prevail despite Hammer Partners' decision to upgrade the rating to Buy from Neutral.
Profit taking on Moncler continues in the luxury sector (-2,55%).
Aeffe +0,87% : Mediobanca Securities has raised its recommendation to outperform.
Among the best large-cap Italian stocks, Saipem toned with a 1,61% lead. The company announced the extension of a credit line and the reduction of the amount.
In light Fiat Chrysler, which continues the rebound after the days of passion of the last eighth.
Among the best FTSE MidCap stocks, Banca MPS (+5,04%), Amplifon (+3,64%), Technogym (+3,05%) and Sias (+2,68%).
The worst performances, however, were recorded at Autogrill, which closed at -3,70%.
