The financial week is about to end on a high note thanks to signals on the tariff front: the China-US trade war seems destined to end in the coming weeks. Meanwhile, the race for government bonds in the European periphery is gaining strength, Italy in the lead. But the Milan Stock Exchange, which also advanced by 0,8% above the 19.600 quota, is the rear behind Paris +1,4%, Frankfurt +1,2% and Madrid, the liveliest +1,5%. London, on the eve of the vote on plan B for Brexit, is up 1,2%. The pound weakens to 0,877 against the euro, after six consecutive days of appreciation.
After the rally in Asia, the revelations of The Wall Street Journal on the possible removal by the US of some tariffs on Chinese imports to push Beijing to make deeper concessions in trade. The idea comes from the Secretary of the Treasury, Steven Mnuchin, who however faces resistance from the US Trade Representative, Robert Lighthizer. The rumor was later denied by a Treasury spokesman, but the markets have not lost their bullish bias.
The BTP strengthens to 2,73% yield, from 2,75% yesterday. the spread drops to 248 basis points, the lowest since the end of September 2018. The Italian economy, according to a Reuters survey, it will grow weakly this year without slipping into recession but both the trend of the GDP and that of the public finances will turn out to be worse than the targets agreed by the government with Brussels. Consensus on full-year GDP growth stands at 0,7% versus 1,1% in October and 1,0% of the government's target, while the unemployment rate is set to remain above 10% .
Euro little moved at 1,138 against the dollar. Brent-type oil is up 1% to $61,8. At Piazza Affari Eni + 2,2%. JP Morgan raises rating to Neutral. The target price has also increased from 13,5 to 14 euros. Saipem +4%, received orders for 1,3 billion dollars in Saudi Arabia. These are jobs in the offshore sector. Tenaris + 2%.
In Piazza Affari the fall of Telecom Italy -7%. There company warned last night that in the last three months of 2018, the Ebitda of the Italian activities will mark a drop of around 5%. financial year 2019, are also expected to affect 2018, in particular the first half of the year". Banca Imi underlines how the announcement was completely unexpected and judges the indications provided after the board meeting as "disappointing". Mediobanca Securities sees no reason for major changes to estimates. “Now we have the bad part of the story, while we still don't know what actions the new CEO intends to implement”.
Leonardo +3%: yesterday the company announced that it has signed a contract from 293 million pounds with the Ministry of Defense of Great Britain. stmicroelectronics + 2%. Shares of companies in the automotive sector are up: Pirelli + 1,8%. Fiat Chrysler + 1,2%. Brembo + 1%.
Benefits taken up Campari -0,2%, after yesterday's historical record. The financials are also positive. Between banks Unicredit +0,8% and Intesa Sanpaolo + 1,5%. Unipol Sai is up 0,3%. In the managed General Bank + 1,8%.
In the rest of the list:
Diasorin+1,4%. Kempen raises to Buy, target 90 euros. Salini Impregilo +3%. The Cassa Depositi e Prestiti could enter its capital in force, according to Il Sole24Ore. The government appears to have taken charge of a bailout plan for the construction sector: after strengthening, Salini Impregilo should first take care of Astaldi +3%, then of the other companies in difficulty. Highlights too Digital Bros + 4%. Gefran +3% and fair Milano + 2%.
