US COLD SHOWER ON QE3, BAGS DOWN
MPS RESISTS, WE LIKE THE CEMENT STOCKS
The cyclone that shuts down the rise arrives from the USA. St. Louis Federal Reserve Chairman James Bullard said in an interview that the chances of a new injection of liquidity from the Federal Reserve are less high than the market is thinking. When asked about the contents of the July 31-August 1 FOMC meeting minutes released last night, the board member replied: “I think the minutes are a little outdated, because we've had some data since then that have been a little stronger". According to Bullard, the weakness of the US business cycle is not enough to justify a massive action by the Fed.
This message, combined with the signs of an economic slowdown coming from Japan and Germany, caused spreads to widen and stock markets to cool down. In Milan, the Ftse/Mib index falls by 1,37% at 14.953, the Frankfurt Dax dropped by 0,83%, the Parisian Cac by 0,68%. London unchanged.
The spread between the 430-year BTP and the similar German Bund rose again above XNUMX basis points. The gap between the two bonds widens to 434 points with the yield on the Treasury bond at 5,69%. The differential in Spain with the rate on Bonos at 505% rises to 6,40 points.
The Wall Street indices are also in negative territory (Dow Jones -0,6%, S&P -0,5%, Nasdaq -0,42%) despite the positive data on the housing market: in July, new home sales rose to 372.000, 7000 more than expected. The Dow Jones index loses 0,6%, similar changes for the Nasdaq and the S&P500.
In Milan, banks retreat with the exception of MontePaschi up 1,43%. Unicredit loses 1,75%, Intesa -3,21%. Negative changes for Banco Popolare -1,06% and Pop. Milan -1,27%. Heavy the final tumble of Generali -3.49%.
The auto sector is down: Fiat -0,74%, Fiat Industrial -0,36%, Pirelli +0,56%.
Bad day for Finmeccanica which lost 3,15% after the news that the Australian Qantas canceled an 8,5 billion dollar order for 35 new Boeing 787-9 Dreamliner airplanes. Finmeccanica is an important partner of Boeing in the construction of the Dreamliner.
Cement companies are highlighted throughout Europe. Buzzi +1,24%, Cementir +1,74%, Italcementi +3,55%.
Shopping is back Mediaset, up 0,7%. Telecom Italy -1,71%.
Iren rises among the utilities, up 3,14%: a newspaper wrote that the utility spun off the subsidiary Ambiente, the first step for a joint venture with F2i in the waste business. A foreign broker, reporting the news, underlines that Iren's waste sector is worth 296 million euro and confirms the 'hold' rating on the stock, awaiting the results for the second quarter and a new industrial plan, expected after the summer .
Sanitation climbs 18,54%. The newspapers resume the indiscretion of an interest by the Hines real estate company in the Santa Giulia area. Risanamento has published a press release in which it confirms contacts with Hines.
