The fears raised by the increase in infections stop at the borders of Europe. Wall Street, which now despairs of receiving indications on economic stimulus before the vote, is focused on following Donald Trump's last minute recovery attempt. And China, the most dynamic area of the world economy, confidently awaits the publication on Monday of the first estimates of GDP for the third quarter, expected to accelerate by 5% from the previous 3,2 thanks to the contribution of consumption and capital investments . It could be an injection of good news to counter the pessimism triggered by the second wave of the pandemic, which risks dominating the work of the European Council.
The Shanghai Composite, down 0,5%, closed the week up about 2%.
Contrasted with the other price lists. Hong Kong's Hang Seng was up 0,7% and Mumbai's BSE Sensex 0,8%. Tokyo Nikkei -0,3%. Kospi of Seoul -0,7%. Sydney's S&P ASX 200 -0,5%.
Futures on Wall Street moved little this morning. Yesterday evening, thanks to the final recovery, the S&P500 closed the session with a modest decrease, -0,2%. The Dow Jones is flat (-0,07%). The Nasdaq lost 0,5%, mainly due to sales on large companies, in fact the Nasdaq 100 fared worse, with a drop of 0,7%.
MORGAN STANLEY (+1,3%) CLOSES BANKS ACCOUNTS
The big names in technology have given way to smaller companies: the Russell 2000 index gained 1,1%. The market was supported yesterday by the performance of Walgreen Boots Alliance, +4,8% after the accounts.
Morgan Stanley was also positive (+1,3%); the quarterly report shows that, like other banks, profits from trading are growing but retail is disappointing.
OIL DESCENT, LIBYA'S PRODUCTION RISES
WTI oil still down 1%. Libya is pushing more and more on production: according to Bloomberg, we have reached half a million barrels a day, with the maxi-field of Sharara rising to 110.000 barrels a day; Libya National Oil Co's goal is to get close to the levels prior to the outbreak of the civil war, around 1,2 million barrels. Libya is part of OPEC, but has been exempt from the restrictions other members have imposed on themselves this year.
SOS FROM MERKEL, BLACK THURSDAY FOR EUROPE
The Black Thursday of the European markets has arrived, punctual as every October. But this time more dangerous, because it was imposed by external circumstances and not by market excesses. The stock exchanges of Europe have in fact fallen heavily in the face of the acceleration of the contagion. Sales surged after Angela Merkel warned Germany couldn't handle a second lockdown. In this dramatic setting (24 new cases in France awaiting the curfew) the two-day meeting of the Council of Europe opened yesterday evening.
ULTIMATUM ON BREXIT: LONDON “SURPRISE AND DISAPPOINTED”
The European Council has sent the Brexit ball back into Boris Johnson's court. At the end of the first session of the meeting between the heads of state and government of the EU states, the exhortation coming from Brussels is that the United Kingdom take "the necessary steps to make the agreement possible". On the English side, negotiator Frost said he was "very surprised and disappointed" by the EU's position. The pound fell heavily in the second part of the session.
PLACE OF BUSINESS DRIVES LOSSES
Piazza Affari left 2,77% on the ground, while remaining, albeit narrowly, above the 19 point mark (19.065). Less heavy, but slightly, the losses of the other lists: Frankfurt -2,54%, London -1,76% and Madrid -1,44%.
BUT DAIMLER SURPRISES IN THE POSITIVE
Surprisingly accelerates Daimler. The German automotive group tore up expectations for the quarter in terms of operating profit: 3,07 billion euros, almost double what the consensus forecast.
LVMH: -7% SALES, BETTER THAN EXPECTED
Paris -2,11%. French luxury giant LVMH reported a 7% drop in comparable sales in the third quarter, beating analysts' estimates.
The tourism sector fell sharply on the Eurostoxx; at their lowest for over three weeks, cars and energy. The banks are heavy. Christine Lagarde said yesterday that the banking sector has ample reserves to absorb losses. The president added that the ECB is always ready to further ease monetary policy if necessary, above all because the uncertainties related to the evolution of the pandemic could weaken the strength of the recovery.
At the end of a session that saw the climate of risk aversion penalize the peripherals, the BTP recovers part of the losses after the words of the president Lagarde.
SPEAK LAGARDE, THE BTP RECOVER
The 0,65-year rate is in the 0,61% area, after closing at 0,7% the previous session. At the time of Lagarde's intervention it was 127%. The spread stood at 132 points with a stake over 119 from XNUMX on the eve.
PERFUME CONDEMNED: LEONARDO -3,9%
Cold shower for Leonardo. Surprisingly, the Court of Milan has condemned six years' imprisonment and a fine of 2,5 million euro for the former top management of Mps, Alessandro Profumo, now CEO of di Leonardo (-3,99%), and Fabrizio Viola, on charges of insider trading and false corporate communications . The prosecutor had asked for acquittal.
ONLY FERRARI AVOIDS THE RED, L'AGRICOLE SUPPORTS BPM
Ferrari +0,5%: Bank of America has raised the target price of the stock from 235 to 265 dollars, confirming the buy rating. The Cavallino was the only blue chip up on 40 stocks making up the FtseMib on Thursday.
Slightly down Banco Bpm (-0,3%), positive for most of the session. The Bank has signed a confidential agreement with Credit Agricole on the possible merger of the bank with the Italian activities of the French group. In the event of a successful outcome of the combination, Credit Agricole would have 40% of Banco Bpm's share capital. According to Reuters, Banco Bpm would be open to discussing M&A with everyone, while in-depth contacts are underway with Credit Agricole on consumer credit partnerships. As part of the agreements signed by the two banks in June 2019 to strengthen the partnership, a put option is already envisaged for Banco Bpm on 10% of Agos, of which Banca Italiana has 39% and Agricole 61%, to be exercised in June 2021 at a price of 150 million euros.
Unicredit fell sharply (-3,4%): the 5 Stars took the field against the appointment of Pier Carlo Padoan at the helm of the institute for fear of operations that could concern Mps (-4,93%) and Intesa Sanpaolo ( -4,5%).
Azimut (-4%) fell sharply in the managed sector.
THE LOCKDOWN SCARES THE INDUSTRY: PIRELLI -4,3%, STM RESISTS
In deep red the industrialists, on whom the danger of lockdown number two weighs. Pirelli leaves 4,32% on the ground, Cnh 2,16%. Fiat Chrysler -2,14% nullified the positive effect of the signing of the contract with the Canadian union. Prismian -1,89%.
Stm contained losses (-1,42%), which acquired and integrated the assets of the French Somos Semiconductor.
Oil companies are also down: Tenaris -4,99%, Saipem -3,28%, Eni -4,18%. OPEC said oil demand is not recovering as expected.
EVIDENCE OF AGREEMENT, BUT ATLANTIA DRAWS BACK
Atlantia slows down (-3,66%) after yesterday's break (+9,6%). It will be an important weekend but probably not decisive for the agreement between the Benetton group and the CDP.
Among the mid caps, Technogym (-5,6%), Mutuionline (-5,37%) and Cerved (-5,04%) performed poorly.
On the other hand, Sit (+1,5%) should be noted, after the company signed a binding agreement for the acquisition of 100% of Janz-Contagem and Gestao de Fluidos SA, a consolidated Portuguese company owned by the Janz family specialized in the of residential water meters.
