It was February 2008 when the Piazza Affari index reached 28 driven by banks, Unicredit in particular, the most exposed in the strategy of spreading customer debts, especially mortgages, along a long chain of creditors. The mechanism, however, had already broken: six months after the crack of Lehman Brothers it plunged the markets into a long crisis from which Milan only emerged yesterday, revising the prices set 14 years ago. And it is no coincidence that the recovery is being led by the banking sector. Indeed, from Unicredit in particular, which today shines again on the lists promising a strong rise in profits thanks to the more favorable climate for those who lend money, given the increase in interest rates. Of course, it is not yet the time to celebrate because Piazza Affari is 14 years late. But the banks, after years on the defensive, leaner and better capitalised, are ready to be the great protagonists again.
THE NASDAQ HOLDS BACK, TOYOTA NUMBER ONE IN AMERICA
On the contrary, there are signs of fatigue on the technology front, the sector that benefits the most from the almost zero cost of money. The Nasdaq lost 1,33% against the Dow Jones, up 0,6% thanks to the banks and the extraordinary recovery of the US auto industry, which, curiously, took shape on the day when for the first time a foreign company, ie Toyota, has conquered the leadership of sales on the American market (2,332 million against 2,178 million Gm). It's not the only oddity of a season disrupted by the lack of chips and the consequences of the pandemic. In the US, 4,5 million workers resigned in November, especially workers in the service sector, who have found better jobs or in any case refuse too low wages.
HONG KONG SUFFERS, MATTLES AGAINST EVERGRANDE
In Asia Pacific the minus sign prevails ahead of the main stock indexes. Only India and Japan hold their positions: Nikkei +0,2%. CSI 300 of the Shanghai and Shenzen price lists -1%. Kospi of Seoul -1,5%, Hang Seng of Hong Kong -1,2%.
Parades yesterday in front of the Evergrande headquarters in Shenzhen: families who have booked (and paid for) half-baked houses protest.
The Chinese technology index (Hang Seng Tech) hit an all-time low tonight and dropped by 3,5% at the end of the session. The fresh fall across the sector follows news of its lead partner Tencent's sale of 2% of SEA, which reduced its stake in the Singapore-based e-commerce and video game company to 19% on pressure from the Beijing authorities.
In Hong Kong, almost a year after the state bailout, Huarong, China's main manager of problematic debts, returned to trading: the stock lost 50%. The company in 20220 lost $16 billion.
THE TREASURY IS CLOSE TO 1,70% THEN IT BRAKES
In the USA, the future of the Nasdaq index loses 0,6%, that of the Dow Jones 0,2%.
1,65-year Treasury Notes at 1,69%, on levels prior to the Omicron variant alarm. A maximum of 20% was reached yesterday. The minutes of the meeting of the Federal Open Market Committee of December 14 and 15 are published tonight at XNUMX.
The ISM manufacturing index, which monitors the performance of the manufacturing sector in the United States, fell to 58,7 from 61,1 in November. A figure below the expectations of analysts.
OIL STABLE, OPEC+ CONFIRMS PRODUCTION INCREASES
OPEC+ has confirmed the increase in oil production by 400 barrels a day since February. WTI oil is flat this morning, at $77 a barrel. OPEC+ has said it considers the effects of the Omicron variant less devastating than previous pandemic waves. The next OPEC meeting is scheduled for February 2.
UNEMPLOYMENT IS FALLING IN GERMANY TOO
There is a growing sense that Omicron will not stifle the economic recovery. Hence the rally of the sectors most linked to the economic situation, from cars to banks, up to leisure time. The optimism is also justified by some macro data, starting from the trend of the German labor market. In Germany, in December, unemployment fell more than expected: according to official data, demonstrating that the labor market of the leading European economy remains resilient despite the increase in infections from Covid-19, the jobless drop by 23 thousand units, to 52% (from 6,1%). Against this backdrop, European stock exchanges hit historic or long-term highs.
EXCHANGES RISE, BONDS FALL. T-BOND AT 1,68%
Stocks are up and bonds are down, but the increase in interest rates is not disturbing the stock exchanges as a whole for now; only the techs suffer. For other reasons, linked to the improvement of the healthcare context, the shares of companies in the pharma world are down.
The US 1,675-year bond trades with a falling price and a rising yield of around +XNUMX%, awaiting tomorrow's ADP report on hiring in the private sector. On Thursday there will instead be the usual weekly data on claims for unemployment benefits; December employment report on Friday. The week also includes the release of the minutes of the latest Fed meeting tomorrow.
EUROZONE, “ONLY” 5.100 BILLION WITH BELOW ZERO YIELD
In the euro area, the basket of government debt with a negative yield decreased in December. The value fell to 5.100 billion euros, from the approximately 6.200 billion euros recorded in November.
THE TREASURY LAUNCHES A NEW BTP 30
The Italian secondary closed in the red today, with the yield on the 10-year BTP rising to +1,21% and the Bund rate of the same duration at -0,13%, for a spread of 134 basis points (+1,94 %).
The Ministry of Economy has entrusted Barclays Bank Ireland, BNP Paribas, Deutsche Bank, Intesa Sanpaolo and JP Morgan the mandate for the placement via syndicate of a new benchmark 30-year BTP maturing on 2052 September XNUMX. The transaction will be carried out in next days.
BUSINESS PLACE NEAR 28 THOUSAND POINTS, STOXX 600 AT THE TOP
European stock exchanges hit long-term or all-time highs. Piazza Affari appreciates by 0,81% and closes one step away from the 28 thousand points (27.985 points) exceeded in the course of trading as has not happened for over ten years. December, with a gain of 6,0%, was the second best month of 2021, surpassed only by +7,90% in March.
Also in the rest of Europe there is an air of records, so much so that the Stoxx 600 index has reached its highest level in history. Paris rises by 1,39%; Frankfurt +0,83%; Madrid +0,4%; Amsterdam +0,12%. London stands out above all (+1,63%), which reopened its doors after the New Year's weekend.
CITIGROUP PROMOTES EUROPEAN BANKS. SOCGEN +4,6%
Banks in turmoil (+1,6% the European sector index): Bnp Paribas +3%, Société Générale +4,6%. Citigroup recommends overweighting European lenders.
British airlines shine: RyanAir and Iag, which controls British Airways, jump by 9%-10%; the Wizz Air flight is even more relevant after the increase in traffic in December.
UNICREDIT SUPERSTAR
Net of Iveco's +7%, yesterday's best blue chips were banks. Unicredit leads the race (+4%), on the highest since February 2020; followed by Banco BPM (+2,6%), Intesa (+2,4%) and Mediobanca (+2%).
IVECO BOUNCES, FERRARI RUNS
More money on Stellantis (+2,2%), preceded by another stock in the Agnelli-Elkann galaxy, Ferrari, which grows by 3%.
Strong rebound by Iveco, which rises by 6%, thanks to the positive judgments of analysts: Equita and Goldman Sachs have expressed themselves for the buy. In the evening, the company announced the signing of a 1,9 billion euro loan.
BROKER REWARDS ARISTON
Ariston also performed well (+4,1%), which collected the positive judgments of BofA and Equita. Instead, Citi awarded the stock a neutral recommendation.
Progress is substantial for oil stocks, in particular Eni (+1,63%) and Tenaris (+1,38%).
IN RED UTILITY AND DEFENSIVE
Red mainly for defensive stocks: Amplifon -2,06%; Diasorin -2,6%. Reductions for utilities: Snam -1,83% and Italgas -1,22%, the latter while the price of gas rises, as Russia has further reduced the flow of supplies.
RECORD ORDER FOR WIIT
Sale Wiit (+5,44% 37,98 euros), after the company signed a four-year contract, for a total value of 2 million euros, with a leading Italian group in the international retail sector.
