China continues to suffer, but in other markets, galvanized by a recovery in Wall Street futures, a rebound is underway. But the effects of "Black Monday" are destined to weigh on the fate of global finance for a long time to come. Starting with US rates: according to polls, the number of operators expecting a rise in September has halved: meanwhile, yields on T bonds have fallen below 2 percent, never so low since April.
The Exchange of Shanghai, still in shock, opened this morning with a new, dramatic collapse: -6,4%, only to then reduce the loss to 3,1%, better than Shenzhen (-4,6%). The Chinese stock exchange thus canceled all the gains of 2015. The 200 billion dollars invested by Beijing to support the Stock Exchange and pilot the decline of the yuan, today set at a new par against the dollar by 0,2, were of little use. % to 6,3987 (-0,25).
For the first time, however, the Asian bags they avoided going China's route. The Exchange of Tokyo, a heavy downturn, dates back to a growth of more than one percentage point. Sydney gains 2,6%, Seoul is also on positive ground. The Australian dollar is also recovering: +0,9% against the dollar. For Korean won +0,5%.
The MSCI Emerging Markets Index compiled by Morgan Stanley fell yesterday to its lowest level since November 2009 at 812 points.
Signs of recovery this morning from the front Petroleum, after Monday's collapses: the WTI trades just above 38dollars, recovering part of yesterday's downturns (-5,5%). The same goes for Brent, which climbed back to $42 after a 6% plunge.
APPLE DOWN 13%, GM -17%. VOLATILITY AT THE HIGHEST SINCE 2009
It could be the day of the rebound, judging by the performance of futures. But it won't be easy to undo Monday's Ko that also knocked out Wall Street.
At the sound of the bell at the end of the day Wall Street has reckoned with the tsunami: the S&P 500 index dropped 3,9%, after having touched a loss of more than 5% at the opening. The Dow Jones retreats by 3,6%, better than the -6,6% recorded during the session, retreating by more than a thousand points. Same script for the Nasdaq -3,8%.
Panic selling has caused a shivering hole in the prices of the most solid blue chips. Apple Lossless Audio CODEC (ALAC), it closed at -2,5%, but during the session it lost up to 13%, burning a capitalization of 78 billion dollars. Things went even worse in Ge (-21,2%). GM -17% and Alibaba -15%.
Volatility has exploded. The Vix index (which measures the degree of fear on stock markets) soared above 50, to its highest level since January 2009, before falling back to 35%. Only the bankruptcy of Lehman Brothers in 2008 had raised the degree of "fear" of investors.
IN MILAN -6%, IT HAS NOT HAPPENED SINCE 2011. THE BTP DAM HOLDS
Europe too paid its tribute to the sell-off, which was so violent that it surprised even the most pessimistic traders. After a deep red start, the stock exchanges of the Old Continent actually tried to limit the damage but the landslide resumed, stronger, after the opening of Wall Street.
In Piazza Affari, the Ftse Mib index closed down by 6%, the heaviest daily drop since 2011. The losses of the other Stock Exchanges were no less heavy: Frankfurt -5% Paris -5,6% Madrid -5,7%. The Exchange of Athens sinks to -10%.
THEeuro it appreciated on the dollar to 1,16 from 1,138 on Friday night.
As was inevitable, there was no lack of strong tensions on the bond market. At the opening, the yield on BTPs rose to 1,98%, the spread to 138 points. But the "fever" then returned: the 1,875-year bond settled at 131%, the spread at XNUMX.
Meanwhile, the Treasury announced that on Thursday it will auction 6,75 billion 6-month BOTs. However, attention is focused on medium-term offers: a new ten-year BTP is on its way.
THE SECURITIES RULE UNDER THE TAKEOVER OFFER, TENARIS SINKS
In the Italian list, all the blue chips closed negatively. Only the companies under takeover bid resist. Ansaldo Sts -0,37% after the Chinese Antitrust gave the go-ahead for the sale of the company to the Japanese Hitachi; however, the approval of the French and American authorities is still required. The umbrella of the Chinese takeover bid protects Pirelli -0,7% . Best of all it does wdf (-0,2%) destined to be sold to Dufry.
The worst was Tenaris, arrears of 9,4%. The collapse in crude oil prices to March 2009 levels also affected other oil stocks. Eni accused a drop of 7,3% Saipem -6,2%. Also in red Enel (-6,04%) after the start of exclusive negotiations for the sale of Slovenske Elektrarne to the Slovak company Eph.
FCA SWINGS, AWARDED BY MORGAN STANLEY
He suffers Fiat Chrysler (-7,8%), although recovering something from the lows of the session marked at 11,71 euros. Morgan Stanley has restarted coverage of the stock with an overweight rating and a target price of 16 euros per share. Experts believe that the positive trend in North America and Europe and the Ferrari spin-off will more than offset the macroeconomic risks associated with China and Brazil.
Credit Suisse, on the other hand, reduced the target price to 18,9 euros, confirming the rating as outperform. Analysts, however, have a negative view on the sector as the recent devaluations of the yuan not only cut the margins of those exposed to China, but also to those present in Europe.
Meanwhile the Eurostoxx Automotive index lost 4,5%. Among other industrialists, STM -5%. Finmeccanica (-3,9%) recovered from the lows of the opening (-5% to 10,99 euros).
Large discounts also among banks: Unicredit -6,3% Understanding -6,1% MontePaschi -7%. It does better Pop. Milan (-3%).
THE BEAR HURTS ON LUXURY: LIXOTTICA AND YOOX -7%
Luxury companies are still in sharp decline, starting from Luxottica (-7%). Yoox (-6,8%) returned to the levels of early April at 25,54 euros. In the worst moment it fell to 24,77 euros. All of Yoox's competitors are suffering: Zalando drops 6% on the Frankfurt stock exchange, Asos loses 8% on the London stock exchange.
Also in sharp decline Ferragamo (-6%). Tod’s retreats by 4,2%, Moncler -4%.
