On the eve of New Year's Eve the Bull, paying for the trophies accumulated in the last tear of 2021, slows down his run. Not before having achieved the 70th historical record of the year for the S&P 500 index during the session. final in the red on Wall Street to reverse course for Asian price lists. In particular, Tokyo closed in the red after a brilliant session, on the wave of the recovery of industrial production, especially of the car sector which seems to have overcome the hurdle of the chips. Good news also from China: the government authorities are raking up the construction rights of Evergrande and other real estate properties in dire straits to entrust them to new builders.
Even in Europe, the markets are preparing to celebrate in a sober way an exceptional year for price lists, supported by the rain of capital injected into the planet's stock exchanges: 12.500 billion of capital between shares, new debt and new loans, 17% more than the levels of 2020 and 25% more than those of 2019. Enough, at least for now, to digest the effects of Omicron. At least until January 3, then we'll see. The novelty is that the small speculators, already protagonists of the rise, have discovered the puts to protect themselves from the fall.
EVEN THE DOW JONES CLOSE TO THE MAXIMUM
- The Asia-Pacific stock markets are weak in the end of the session, conditioned by the uncertain closure of Wall Street.
- Japan's Nikkei 225 loses 0,7%, South Korea's Kospi falls 0,9%, Hong Kong's Hang Seng Index -0,9%, China's CSI 300 -1,2%. Sensex of India flat.
- Yesterday evening the S&P500 index finished down by 0,1%, after touching a new all-time high at 4.807 points, the threshold of 4.800 points was crossed for the first time. NASDAQ -0,6%. Dow Jones +0,3%, in turn just a hair's breadth from its personal historical record thanks to Boeing +1,4%: the Indonesian authorities have lifted the flight ban for the 737 taken after the in-flight tragedy.
- Futures on the EuroStoxx 50 index anticipate a start around parity. Yesterday the main stock exchanges of the old continent reached their highest levels for a month.
BITCOIN LANDSLIPS, BELOW 50.000
- Brent and WTI oil are up slightly, from yesterday's +0,4%.
- Gold changes hands at $1.807 an ounce.
- Bitcoin is trading slightly higher at $47.900. Yesterday it finished its worst session in four weeks with a 6,7% drop.
THE GAS CRISIS IS DEFLATED, THE TURKISH EMERGENCY EXPLODES AGAIN
European stock exchanges closed at highs, supported by the optimism generated by the expectation that the global economic recovery will not be compromised by the new wave of COVID-19 and by the tightening of monetary policy. The optimism is also fueled by the trend of the gas market which reduces losses to 2% at 102 euro MWh. Last week's record peak was reached at 187 euros per MegaWatt/hour. There are other gas tankers en route to Europe. On the currency front, the dollar gained some positions: Cross Euro dollar at 1,1294 from 1,1320 in the morning. But the most relevant data is the new landslide of the Turkish lira: - 5,9%, after losing almost 8% against the dollar on continued fears for the country's monetary policy after last week's massive rally .
LESS ECB PURCHASES, TENSION ON BTPs
Tensions on BTPs eased. The ten-year yield falls to 1,10% from 1,16% at the opening, the highest since the beginning of November. The Italy/Germany spread is at 133 basis points, yesterday it widened to 140 basis points, a level it hasn't seen for a year.
In the last week, the ECB made asset purchases under the PEPP for 7,42 billion euros, a sharp decrease compared to 11,8 billion seven days ago. The total of purchases made in the Pepp area consequently rises to 1.585,06 billion out of a total budget of 1.850 billion. The Pepp will come to an end at the end of March 2022.
“We continue to view Omicron as a less dangerous variant; if not, we will probably have to change our forecasts,” writes Andrea Delitala, head of Euro multi-asset at Pictet Asset Management. “The general idea is that governments will be able to deal with the pandemic, but central banks will not change their more hawkish stance aimed at fighting inflation.”
MILAN ONE STEP FROM THE RECORD, PARIS AT THE TOP
Piazza Affari stops just short of the annual record: +0,79%, at 27.444 points against the 2021 top (27.868 points), reached on 15 November last.
Paris updates its all-time highs and closes with an increase of 0,57%. Veolia +2,7% and Carrefour +1,8% are running.
Frankfurt +0,81%; Amsterdam +0,46%; Madrid +0,76. Stop for the Bank holiday London.
The Eurostoxx 50 has reached a five-week high.
THE UTILITIES WAKE UP, THE BLACK JERSEY 2021
It was utilities day in Piazza Affari. The Stoxx index of the sector +1,20% and reaches its highest level since January. But, despite the rally, the sector is the worst in 2021 (+5,4%) together with Travel and Leisure (+3,5%).
A2a shines +2,1% after the company signed an agreement to enter the majority of Volta Green Energy. S3follows Italgas +2,1% followed by the other securities in the sector: Hera +1,8%, Snam +1,7% .
FUNDAMENTALS REWARD SECTOR: P/EA 20,4X
Enel +1,6%. Capital and Research Management holds 4,999% of the company's capital.
In terms of fundamentals, we are facing one of the sectors with the most attractive multiples: the average P/E of the Stoxx Utility sector estimated by analysts gathered by Bloomberg is around 20,40 times. Conversely, the expected return in terms of dividend is among the highest: average Dividend/Yield at 4,30%.
Money also on the oil sector, in line with the rise in the price of crude oil: Saipem +2,3%, Eni +0,9%, Tenaris +0,8%.
OF THE OLD: SMALL IS NOT BEAUTIFUL. AND BUY GENERALS
The banking sector is also on positive ground: Banco Bpm +1,7%, Bper +1,3%.
Mediobanca +1,6%. Leonardo Del Vecchio has rounded up his stake in Generali to 8,618%. “We have to start tearing down the walls and create first national and then European champions, to compete on an equal footing with the international giants. We need the perspective of entrepreneurs rather than financiers. Dividends today are often at the expense of the growth in size of companies». Thus the entrepreneur in an interview with Corriere della Sera traces the lines of "his" Generali. "It is time to take our risks - claims the entrepreneur - in the certainty that, in the absence of this evolution, we will be destined to become extinct".
SWISS PASSPORT FOR BANCA IFIS
Outside the main list, Banca Ifis shone +5,5%: the stock was driven by the news that the resolution to transfer the registered office to Switzerland of La Scogliera, owner of 50,5% of the institute's capital, had become effective.
CNH PROMOTED BY ZACKS, INVECO DEBUT ON JANUARY 3
On the eve of the Iveco demerger CNH Industrial was promoted by Zacks who raised the target price from 19 to 21 dollars per share. Borsa Italiana has admitted Iveco Group to listing, which has also filed the application for admission of its shares to trading, the start of which is expected on 3 January.
There are only four blue chips in negative territory: Diasorin -0,21%; Campari -0,12%; Telecom -0,07%; Pirelli -0,07%.
TAKEOVER RUMORS ON ALERION +4%
Outside the main basket, in the renewable energy sector, Alerion stands out +4,06% on new historic highs; the market is betting on the launch of a takeover bid after press rumors according to which the family that controls the company intends to sell its 43%.
EGM, THE FINANCE IPO. TECH CLOSES THE YEAR OF RECORDS
On the EGM Enertronica stands out +4,08% after the signing of a contract worth about 1,6 million dollars for the supply of about 40 inverters for a photovoltaic plant in Imperial Valley (California).
Today he lands on Egm Finanza.tech, a financial consultancy company focused on medium-sized Italian companies that carries out consultancy activities in extraordinary finance transactions and supports corporate financial management using artificial intelligence and a proprietary technological platform. During the placement, bookings exceeded the offer by six times.
