It's not a disease, but a strange malaise, almost dizzy. Difficult to define the mood of markets close to the highs but far from euphoric. Indeed, once the fear of inflation has been forgotten, bonds are sliding downwards both in the US and in Europe. The T bond at 1,348% widens the gap with the yield of Chinese bonds, which today yield 176 points more. But the dollar rises, as does gold again above 1.800. Surprisingly, however, oil is slowing down: failure to reach an agreement in OPEC+ can lead to an unwelcome increase in supply because in the meantime it is holding back the German economy and there are signs of fatigue in the USA as well. The Stock Exchanges thus approach the publication of the Fed minutes with a sudden and probably unjustified anxiety which translates into a setback for banks and other cyclical values.
TOKYO DOWN, ALIBABA SAVE SUNING
- In Asia Pacific this morning, Tokyo's Nikkei is down 0,9%, even as another $180 billion in stimulus is on the way from the government, Hong Kong's Hang Seng is down 0,8%, Seoul's Kospi is down 0,4 .XNUMX% despite Samsung's excellent results.
- The CSI 0,8 of the Shanghai and Shenzen lists rose by 300%. The entry of Alibaba in the capital increase, 1,4 billion dollars, for the rescue of Suning, owner of Inter, is confirmed.
DIDI -20% SCARE WALL STREET
- Xi Jinping's shadow scares Wall Street. The restrictions on Apps imposed by the authorities on Didi and other Chinese stocks listed on the American stock exchanges are leaving their mark: Didi, the Chinese Uber, in a week of listing on the Nasdaq lost 20 billion in value (-22%) with losses for brokers.
THE PENTAGON CANCEL THE ANTI-AMAZON ORDER +4,7%
- The Dow Jones index is down -0,6%, the rise of the S&P 500 is interrupted -0,2%. On positive ground the Nasdaq +0,17% to a new high.
- The primacy coincides with the successful debut after Bezos. Amazon up 4,7% The company is expected to enter the big round of contracts for the US military, after the Pentagon canceled the controversial JEDI project, a super contract to build a cloud infrastructure for the military from 10 billion dollars over ten years awarded to Microsoft in 2019 under pressure from Donald Trump to punish the enemy Bezos.
- The banking sector is down sharply - 2,5%.
IT BOND RETURN TO FEBRUARY LOWS
- Yesterday the Bloomberg commodity index lost more than 2%, but this morning it rebounds.
The yield on the 1,36-year Treasury Note fell to its lowest level since February to 1,43%, from 1.800% on Friday. Gold thus moved to the highs of the last three weeks at XNUMX dollars an ounce.
OIL FALLS: WTI AT 73,2 DOLLARS
- After a rollercoaster day this morning, WTI oil is flat at $73,2 a barrel. On Tuesday on the same day there was a leap of more than two per cent which led to the achievement of a maximum for the period, followed by a change of course which brought the balance of the session negative: -2,5%.
- It is not clear what is happening inside OPEC +, it seems that the negotiation is going on to the bitter end and that an agreement on the new production regime will be announced in the next few hours, but even if this were the case, the image damage caused by three missed summits , remains and could undermine the credibility of the organization.
GERMANY IN BRAKING CRUSHES THE EURO
The German recovery is holding back, slowed down by news arriving from China: both industrial orders and the Zew were in fact below expectations. The Eurozone economy is also adapting because other signals are arriving which affect risk appetite: the price of oil is increasing (declining at the end of the day), gold is rising. And capitals rediscover the dollar as a refuge, while snubbing fixed income. A nervous meeting ensued, marked by the weak start of the US markets, conditioned by the ISM data. Today there will be another truth test, the most eagerly awaited of the week: the publication of the minutes of the last Fed meeting, the one in which a combative minority has emerged (for now) asking for the turnaround on rates to be brought forward. Meanwhile, the ECB will update its recovery forecasts. According to rumors, extraordinary meetings are underway between the members of the governing council, called to discuss the new monetary strategy. In the event of an agreement between hawks and doves, the announcement could come during the week.
MILAN -0.8%, THUD OF THE ZEW
- Piazza Affari sells the gains on the eve with interest: - 0,8 to 25.227 points.
- Prometeia has revised upwards its growth estimate for 2021, bringing it to +5,3%.
- In the final Frankfurt lost 0,93%, Amsterdam -0,34%, Paris -0,91%, Madrid -0,92%, London -0,87%.
- Orders to German industry recorded an unexpected drop in May, the worst since the 2020 lockdown (-3,7% on a monthly basis compared to +54,3% compared to last year). The Zew sentiment index came in at 63,3, below expectations of 75,2.
- "It is foreseeable that the opening will cost us at least 50 dead". Boris Johnson however confirms the'total opening by July 19.
STELLANTIS INVESTS IN ELECTRICAL IN THE UNITED KINGDOM
- On the corporate front, London has achieved great success: Stellantis has decided to invest in the construction of the first one electric car system at Ellesmere Port in the North West. "It is the confirmation of the quality of Made in England", said Premier Johnson triumphantly.
- Alstom crashes in Paris -8,3% after the presentation of the industrial plan: the company will be in the red until 2023 and has revised upwards the estimates for the integration of the Canadian Bombardier
GOVERNMENT YIELDS DROP, BTP AT 0,75%
In the afternoon, government rates fell significantly while caution returns to the prospects of the global economy.
Italian and French XNUMX-year yields hit their lowest since April,
the Bund's price on the same segment fell to its lowest level in three weeks.
At the end, the 0,75-year rate stood at 0,81%, compared to XNUMX% at the start of the session and at the previous close.
THE SPREAD RETURNS TO 100
The spread on the Bund on the ten-year segment fell to 102 basis points, on the level of the start and yesterday. What fueled the rally of government bonds in the euro zone, says the strategist of Ing Antoine Jouvet, was "the attitude of ECB more markedly soft compared to other central institutions and the greater propensity of the economies of the block to close in the face of the increase in infections ".
RECORDATI AND DIASORIN QUEENS OF THE BUSINESS SQUARE
Few stocks ended trading in positive territory. Among these, the pharma patrol stands out. Recordati rises by 2,98%: Intesa San Paolo confirmed the hold rating and the target price of 50,3 euro. Analysts followed the press indications that in the coming weeks Parliament should approve the new 2021-2023 national plan for treatments for rare diseases, aimed at guaranteeing patients free access to such treatments and a 65% tax credit for related research and development projects. Rare diseases are "an important part of the company's business and development strategy, accounting for approximately 2020% of group revenues and 22% of consolidated EBITDA in 26".
Diasorin follows with growth of 2,49% in the face of the tampon emergency which shows no signs of returning. Focus also on Amplifon +0,17%, which has signed a new joint venture in China with a local partner in the Chinese hearing care retail market.
Among industrialists, a solid performance for Inwit +1,18%: less severe rules are emerging for antennas, modeled on Community legislation.
DEEP RED FINAL FOR OILS
The most effervescent stocks on the eve, i.e. banking and oil, plummeted. In the end, the latter pay for the fall in the price of crude oil. Tenaris loses 4,69%, Saipem 2,21%, Eni 1,99%.
RATES FALL, BANKS SLIP
Banco Bpm, the most speculated stock in the credit sector, pays the highest price: -3,11%. Mediobanca follows -2,81% which burns the gains of the day before. Same loss for Unicredit -2,81%. Nexi rebounds +0,8%.
THE SINGLE NETWORK wobbles, TELECOM GOES OFF
Among the worst blue chips of the day is Telecom, -3,19%. Radiocor, citing some operators, argues that the origin of the decline is the announcement of spare parts in the management combined with the rumors about the longer timing in the reorganization of Open Fiber. Thus, the perplexities about the performance of the business and the single network project are increasing, a theme the latter has already been surrounded by great uncertainty since the Draghi government took office.
Investment in England does not save Stellantis -1,19%. Cnh Industrial -2,75% and Leonardo -2,36% also fell.
The rest of the Ovs list did well +2,14% which announced the terms of the 80 million euro capital increase approved at the end of 2020.
FIREWORKS IN THE AIM
Instead, two rookies shoot fireworks on the Aim:
- Id-Entity + 47,18%. The Martech Content Factory, active in the production of omnichannel content, closed its first day of trading with an increase of +47% to 2,5 euros after the placement of ordinary shares, with total funding of 2.873.000 euros , against a demand, equal to about 4,5 times the offer coming from leading Italian and foreign institutional and professional investors.
- Spindox +17,33%. The company operates in the ICT services and products market as a company that designs, develops and integrates innovation. The freshman ranks among the top 50 companies in the sector in Italy, with a strong growth rate.
