ASIA FOLLOWS WALL STREET: TOKYO +1,2%
RECORD SURPLUS FOR BEIJING: 31,5 BILLION
Asian stock markets responded to the US stock market rally by interrupting the long series of declines. The Nikkei 225 index, close to the closure, gained 1,2%, like the Korean Kospi, supported by the decision of the Seoul authorities to ban short selling for the next three months. The increase in Hong Kong's Hang Seng (+3,69%) was more robust. The MSCI Asia Composite index, after losing 15 percent in the last nine sessions, is up 2,1 percent. On the shields, in Shanghai, Zijing metals, the leading Chinese gold producer, up by 7,5% after announcing higher than estimated results. Meanwhile, Beijing's locomotive is advancing despite the credit crunch. In July, the Chinese trade balance recorded the best result ever: +31,5 billion. Exports rise (+20,4%), and imports also continue to increase (+22,4%). Still, the yuan is at a 17-year high.
AFTER THE FED, THE GALLOPING BULL
“EXCEPTIONALLY LOW” RATES ON WALL STREET UNTIL 2013
Rates will remain "exceptionally low" until mid-2013. The Federal Reserve's communiqué, never so expected, has not given us any indications of new expansionary maneuvers by the American central bank, as many had hoped. But after a phase of heeling, which brought US price lists back down, the Bull almost suddenly made its appearance in the Wall Street enclosure. Indeed, in the last half hour, American stock exchanges have regained much of the ground lost on Black Monday. In closing, the Dow Jones Industrial scores a rise of 3,93% to 11.239, ie 430 points above; the Standard & Poor's 500 closes at 1.172,53 points, up 4,74%, the largest increase since March 2009. The Nasdaq also rises: +5,29% to 2,482 points. Meanwhile, despite the loss of triple A, the race for T bonds continues: yesterday the yield slipped to a new all-time low, from 2,32 to 2,2%. It is the signal, like the drop in the price of oil below the barrier of 80 dollars a barrel, that the markets "feel" the arrival of the recession, to which the Fed does not intend for now to oppose what is left in its arsenal of stimuli for the economy. Of course, during the meeting, the FOMC members discussed tools to strengthen the recovery, which will be used "if necessary". But Ben Bernanke's strategy, probably in favor of providing new liquidity to counter the slowdown in economic activity (growth was only 0,8% in the first half of the year), has to deal with more lively opposition , Yesterday the FOMC decided by majority vote, 7 against 3, confirmation of clear divisions. Three governors (Richard Fisher of the Dallas Fed, Narayana Kocherlakota of Minneapolis and the auspicious Charles Plosser of Philadelphia) thus wanted to highlight the concerns about inflation, which will settle at 2,5 percent at the end of the year, half a point above the Fed's target. In short, the surge in prices scares more than the 25 million Americans looking for a job. After the meeting of the FOMC, the speech that Bernanke will give on August 26 in Jackson Hole in front of the governors of the central banks takes on even more importance. In 2010 the Fed chairman used that stage to launch “Quantitative easing”.
APPLE (+5,89%) PASSES EXXON ON WALL STREET
GOLDMAN CHOOSES 4 BIG FOR A "BUY"
In this context, it is not difficult to foresee that the road to recovery, after the setbacks of recent weeks, will be harsh and tormented, as is inevitable given the volatility of the last few sessions. But, at least for now, it seems that the "bottom" has been touched. Especially judging by the rebounds of financials, with +16,74% of Bank of America and +13,85% of Citigroup. +8,07% for Wells Fargo, promoted to "outperform" by Fbr Capital Markets. Upgrades also for McDonald's (+4,69%) and Humana (+9,29%) by Goldman Sachs (+4,31%), which removed Ups (+2,72%) from the "conviction buy list" and Pfizer was added (+5,64%), as well as Boeing and Coca Cola. Deep red instead for Aol (-25,75%) on the day of the accounts. However, it was the day of a historic overtaking: Apple (+5,89% to 374,01) surpassed Exxon (71,64 dollars -4,25%) and has been the company with the largest capitalization since yesterday of Wall Street: the two companies now "weigh" around 348 billion dollars. Volatility, however, is destined to remain high, as is inevitable after a storm which, since last July 24, has reduced world stock market capitalization by 14,8 percent: 88 trillion dollars less. Says Andrew Coté, ING strategist to the New York Times:: “It will be a market of ups and downs, like a mountain stream which, after a waterfall, seeks its right level. In the meantime, expect a bumpy ride." Gold, meanwhile, continues its march: 1.740 dollars an ounce, after having touched a maximum of 1.770 dollars during the day.
MILAN, THE BCE PARACHUTE WORKS. THE BANKS START AGAIN
TRICHET: REFORMS IMMEDIATELY TO TRUST THE MARKETS
“Put all the episodes together, including Lehman Brothers, there is no doubt that we are experiencing the worst crisis since the end of the Second World War. And I think things would have been much worse if the authorities hadn't taken the important decisions they have taken." Thus Jean-Claude Trichet, during the interview in which he urged Italy and Spain to move with delay on the path of reforms, if the two countries want to recover the confidence of the markets. Thanks to the parachute of the ECB, however, the Milan Stock Exchange was able to close a session characterized by frequent and sudden changes of direction in positive territory. All European markets therefore remain nervous but have received a positive injection from the sprint performance of Wall Street. The positive note regards the Btp. In fact, the tension on Italian bonds eased further, with the Btp-Bund spread stabilizing below 280 basis points. According to operators, the hand of the ECB is evident, which yesterday allegedly bought around 7,5 billion euros of Italian BTPs and 2,5 billion of Spanish Bonos on the secondary market. In a very nervous climate, in Piazza Affari the Ftse Mib gained 0,52% to 15.721 points, while the Ftse All Share advanced by 0,50% to 16.394. The banking sector held up well: Popolare di Milano gained 7,82% to 1,448 euro, Banco Popolare 2,75% to 1,197 euro, Ubi Banca 0,80% to 2,77 euro, Monte dei Paschi 1,57% at 0,465 euros, Intesa SanPaolo 1,16% at 1,312 euros. Almost on the sly, taking advantage of the fall in prices, Vincent Bollorè purchased 1,5 million Mediobanca shares - equal to approximately 0,17% of the share capital - for a total value of 8,74 million euro. The transaction took place on 3 August at a unit price of 5,8271 euros, as stated in the communications to the market. Yesterday Mediobanca closed up 1,16% at 5,66 euros. Before yesterday's announcement, Bollorè's share, which is part of the Piazzetta Cuccia syndicate pact, was 5,18%. Telecom Italia (-1,89% to 0,832 euros) slipped to the bottom of the main basket after gaining almost 6 percentage points in the last two sessions. The two public energy giants were bad: Eni lost 1,15% to 12,91 euros, while Enel fell back by 0,67% to 3,608 euros. Brilliant Lottomatica (+4,36% to 11,74 euros) after the American subsidiary Gtech signed an 18-month contract extension (extendable for another 12 months) for the management of lotteries in Trinidad and Tobago. “The news has a positive qualitative impact, as it is the umpteenth success in the renewal of the contract portfolio – wrote Equita -. In our opinion, the group can benefit from a very solid business supported in Italy by the relaunch of the lotto and the roll-out of video lotteries (ahead of its competitors)”. Furthermore, explained the Milanese firm, the group "is reducing its debt faster than the plan indications and has just completed the debt refinancing". Finmeccanica gained 1,06% to 5,03 euros after announcing it had won two orders worth a total of around 120 million euros in the United States, through DRS Defense Solutions, and in Russia, through Selex Elsag. Tod's (+3,08% to 76,90 euros) took advantage of the upgrade by Citigroup, which brought the recommendation on the Della Valle family group to a buy from the previous hold.
