The race for share prices continued in Asia this morning, regardless of the epidemic risk that threatens the continent on the eve of the holiday season to celebrate the start of the Year of the Rat: from the lows of September, the capitalization of world markets has risen by 13 billion.
The stock exchanges, supported by the abundant liquidity and by the comforting data of the US economy, have achieved new records: the Asia Pacific index (+0,1%) marks the highest since June 2018, Tokyo +0,2% is at the top for 15 months. The same happens in Australia and the Korean Kospi.
Chinese stock exchanges are still in positive territory (+0,5%), rallying for seven weeks. The People's Bank of China (PBOC) confirmed its 5-year lending rate at 4,80% and its 4,15-year lending rate at XNUMX% for January.
EMBARGO OF LIBYAN CRUDE, POSITIVE OPENING IN EUROPE
Oil prices are in turmoil, under the pressure of the cut in Libyan supplies: Brent at 65,61 dollars (+76 cents), Wti at 59,61 dollars. The National Oil Corp has announced that General Khalifa Haftar has blocked exports of crude oil in ports under his control.
The leaders of the international community gathered in Berlin they approved an agreement which provides for a permanent ceasefire in Libya, an arms embargo and the start of a political process to arrive at a government of national unity.
Finally, OPEC Secretary-General Mohammed Barkindo told CNBC in an interview that global oil demand has "upside potential."
Wall Street, after setting eight records in the first eleven sessions of 2020, is closed today for the recurrence of Martin Luther King Day.
CITIGROUP RECOMMENDS TO “OVERWEIGHT” PIAZZA AFFARI
Same climate in Europe. In Piazza Affari, the FtseMib index rose to levels it hadn't seen since May 2018. Citigroup has communicated to its customers that it has upgraded the rating on the Milan stock exchange to Overweight. EuroStoxx 50 futures are set to a positive open this morning.
On these premises, the markets are preparing to experience a week full of events, from US quarterly reports to central bank meetings, starting with the ECB. But there is certainly no shortage of geopolitical appointments.
DAVOS, IN VIEW OF THE TRUMP/GRETA DUEL
We begin today with a new duel between China and the USA, this time on the Huawei front. Today, the trial for the extradition of Meng Wanzhou, the daughter of the founder of Huawei, is underway in Canada, accused in the US of violating the embargo on Iran.
Tomorrow Donald Trump will go down to Davos to participate in the World Economic Forum to reiterate his hostility to the fight against climate change and to the other principles of "stakeholder capitalism" to which this year's meeting is dedicated. It will be an opportunity for a long-distance confrontation with Greta Thurnberg, the Swedish girl who is the symbol of the battle for the environment.
THE TRIAL FOR THE US PRESIDENT IS UNDERWAY
The US president will also have to face the start of the impeachment process in Washington. A report presented by the Democrats calls for Trump to be removed from his role to "protect national security".
CENTRAL BANKS, THURSDAY IT'S THE ECB'S TURN
It is in this context that central bank activity resumes at full speed. It starts again with the directorate of the ECB, scheduled for Thursday 23, pending the Fed which will meet on the 29th. No news on rates is expected in Frankfurt, thus favoring the shower of medium-long term issues that take advantage of low rates. But there is expectation for the first results of the debate on the institute's new monetary strategy launched by Christine Lagarde.
The central banks of Japan and Canada will also meet during the week. Even in these cases, no news on rates is foreseen.
The International Monetary Fund presents the World Economic Outlook today in Davos. Instead, the finance ministers of the euro area will meet in Brussels. Relations with London are under tension in view of the Brexit negotiations.
Also to be followed are the publication of the Zew, the German business confidence index, and the release, on Friday, of data on manufacturing activity in Europe.
US QUARTERLY: THE ACCOUNTS OF NETFLIX AND IBM
In the USA, after the accounts of the big banks, the quarterly campaign will come alive tomorrow with the accounts of more than 40 companies in the S&P 500 index. Among others, Netflix, Johnson & Johnson, Intel, Ibm and major US airlines.
ITALY, IT'S ABOUT ATLANTIA
In Italy, one week after the vote in Emilia and Calabria, the case of Atlantia remains at the center of attention. The company has signaled to the Italian government its willingness to re-discuss the terms of the concession held by Autostrade per l'Italia. Informal contacts have allegedly been initiated with the executive to explore alternative solutions to the revocation of the concession, including the revision of the motorway toll adjustment mechanism and the revision of the terms governing the compensation due to Autostrade in the event of revocation of the concession.
Parliament, before the vote in Emilia and Calabria, will have to deal with the rescue of Popolare di Bari and yet another chapter in the Alitalia saga.
TODAY THE ADVANCE COUPON OF ENEL AND SNAM
The Piazza Affari calendar provides for an interim dividend from Enel: 0,16 euros against 0,14 a year ago (+14,3%, yield equal to 2,1%), advance of a profit which, according to what has already declared, it should be at least 4,8 billion.
Coupon advance also for Snam: 0,095 euro. Stm's accounts will be released on Wednesday.
