Stock markets in the red in Europe, at the end of an entirely negative session, which made a few small steps forward in the end. Oil collapses and the euro rises, while the Italian secondary zeroes losses and US government bonds see declining yields.
EUROPEAN PRICE LISTS
Piazza Affari yields 1,63% and drops to 26.177 points, after a foray below the 26 mark during trading. The sell-off hit industrials, financials and oil stocks the most.
In the rest of Europe: Frankfurt -1,92%; Paris -0,82%; Amsterdam -1,12%; Madrid -0,83%; London -1%.
TOKYO AND NEW YORK
The starter of the continental lists this morning was a 2,13% drop in Tokyo's Nikkei, while in the afternoon the negative start of Wall Street only confirmed the negative sentiment, without weighing it down. The global aversion to risk, in the short week of Christmas, comes largely from concerns about the Omicron variant, which confuses due to its virulence and forces countries to new restrictive measures (the Netherlands has decreed the lockdown), while raising doubts on the effectiveness of the vaccines despite the reassurances of the producers especially thanks to the third doses. Today there was the go-ahead from the EMA for Novavax serum for adults, which thus becomes the fifth type of vaccine available.
The Chinese central bank's decision to lower bank funding costs also contributed to instilling uncertainty, a move read by some observers as confirmation of the slowdown in the Celestial Empire's economy.
In the US, the decision by Democratic Senator Joe Manchin not to vote for President Joe Biden's $ 1.750 trillion package, which at this point does not have the numbers in the Senate to get his 'Build Back Better' spending plan approved, also weighs heavily. Due to this news Goldman Sachs cut its US growth forecast (Q2022 3 growth revised from 2% to XNUMX%).
ZEGNA DEBUT IN NEW YORK
Despite the freezing weather, the welcome was warm on the New York Square for the Ermenegildo Zegna title on the day of its debut. After opening at $10,33, the stock is now up 10,85% to $11,24. Zegna arrived on the American list thanks to a combination with Andrea Bonomi's Investindustrial Spac. Late at night in Italy, the two groups – Zegna and Investindustrial Acquisition Corp (Iiac) – announced that they had completed their business combination. The Zegna family will maintain control with almost 66% of the capital, Investindustrial will remain a major shareholder with around 13% while the free float is around 21%.
MODERN IN RALLY
Moderna tops the S&P 500 after announcing preliminary data on a half booster dose of its currently licensed vaccine, which raises antibody levels about 37-fold; a full dose of 100 micrograms would be even better, as it raises antibody levels about 83-fold. The serum would be effective against Omicron.
PHARMACEUTICALS SPOTLIGHT IN MILAN
Some stocks in the health sector are also highlighted in Milan. Diasorin, fresh from last Friday's heavy decline, rebounded by 1,07%.
Jefferies has raised its target price to 134 euros from 125. Furthermore, according to Intesa Sanpaolo analysts, "the stock has already included last Friday's disappointing 2022-25 financial targets".
Tips on Amplifon +0,05%.
Among the few blue chips with the plus sign on this day of sales there are also Prysmian +0,51% and Terna +0,26%.
THE MAJOR REDUCTIONS OF THE FTSE MIB
On the main list, the worst performances are those of Agnelli securities, in a negative auto sector at European level: Cnh -3,93%; Stellantis -3,64%; Exor -3,89%; Ferraris -3,21%.
Financial stocks also fell, led by Mediobanca -3,64%.
Outside the main basket, Mps is in the red (-2,83%), after the announcement of the industrial plan which provides for a recapitalization of 2,5 billion in 2022.
Suffering for Juventus (-6,37%), on the day in which the offer on the Stock Exchange of the unexercised rights linked to the capital increase was closed in advance.
THE BOND
Bonds recover losses while the FT underlines the importance of a "second best" for Mario Draghi as President of the Republic
In a context of flight from equities and purchases of safe government bonds such as Bunds, the Italian secondary sector limits the damage and recovers the initial losses. The spread with the German ten-year bond remains at 128 basis points (-0,32%), while the BTP yield closes at +0,92% and that of the Bund at -0,37%.
For the moment, the movements on the tricolor card are calm, despite some political fibrillation, while with the new year the election of the President of the Republic is fast approaching. Today in the Financial Times, Bill Emetton, historic director of the Economist, replies to his former newspaper and says that the Quirinale is certainly the second best option for the premier because another idea "about which there is much discussion - namely that Draghi can to remain prime minister until 2023 – is but an illusion. The considerable progress made in these 10 months in Palazzo Chigi depended on a ceasefire between the parties of the coalition that forms its majority, out of which there is only the Brothers of Italy. Past January, that lull could hold for another six months, at most, before election fever starts to build. Six months with your hands on an increasingly uncontrollable steering wheel or seven years directing traffic: this is the real option for Draghi, and for the Italian parliamentarians.
Meanwhile, Draghi held a cordial meeting in Rome today with German Chancellor Olaf Scholz, who praised Italy for its progress, including on the pandemic front. For Draghi on the stability pact, the positions of the two countries will become closer.
NAGEL ARRIVES AT THE BUNDESBANK
In a context in which much is in progress at the top of the Bundesbank, it will come with the new year
Joachim Nagel, after Jens Weidmann's farewell. Nagel, a Social Democrat has been called the most dovish of the German central bank hawks.
EURO, OIL AND GOLD
On the foreign exchange market, the dollar index falls slightly and the euro recovers ground, but remains below 1,13.
The Aussie, considered a gauge of risk appetite, fell 0,23% against the greenback after hitting a 13-day low.
The trend in oil is decidedly negative, due to concerns about the global economic recovery and the Omircon variant of the coronavirus. Brent yields 5% and trades at around 69,8 dollars a barrel; the Wti loses 5,7%, 66,7 dollars a barrel.
Gold has not moved much: spot gold is slightly down, around 1793,50 dollars an ounce.
