The positive signals that arrived yesterday from the US economy reduced the fears about the state of health of the US locomotive that emerged after the "soft" signals from the Fed which had justified the suspicions of a possible recession. The markets are thus heading towards a quiet weekend, also because the ultimatum on Brexit moves to April 12th. The map of the price list reflects the picture as painted by the central banks, once again devoted to an extremely "soft" recession-proof policy.
The Asian price lists are slightly moved or slightly down. Tokyo's Nikkei index loses 0,1%, with a positive weekly balance of 1,4%. Hong Kong is down 0,5% (-0,3% on the week). CSI 300 index of Shanghai and Shenzhen stock exchanges -0,9%, but +1,4% for the week. The India Stock Exchange gains 0,3%, +2,1% for the week.
Positive performance for the US markets. The Midwest Economic Activity Index signals much stronger performance than expected. The Dow Jones rose by 0,8%, the S&P 500 index +1,09%, the Nasdaq does even better, +1,42%.
RECORD DEBUT FOR LEVI'S IN WALL STREET
Driving the market was above all Apple (+3,5%), which returned yesterday to being the most capitalized company in the world. To support the Apple is the wait for the landing in the TV production sector. Laura Martin, an analyst at Needham, raised the company's rating from buy to strong buy and the target price from $180 to $225.
Great debut (indeed return) of Levi's Strauss: +31,8% to 22 dollars on the first day of listing.
The promise of low interest rates until the end of the year sparked the rush to buy bonds, the yield on ten-year Treasury bonds fell to 2,52%, the lowest in the last thirteen months.
The dollar is recovering on most counterparts, after the decline of the previous days. Euro-dollar was at 1,137 (-0,4%) at a close yesterday, this morning it is flat.
Brent oil trades at 67,8 dollars a barrel, down 0,1%, yesterday closing -0,9%: at today's prices, we would be in the third consecutive week of increases. Saipem -1,5%, Tenaris +2%, Eni +0,5%.
BREXIT, THE ULTIMATUM POSTED TO APRIL 12
The pound is bouncing against the euro this morning, at 0,866, after a four-day nosedive: the hypothesis of a no-deal Brexit on March 29, at least for the moment, is set aside: the European Union decided tonight to concede to Theresa May another two weeks of time: in the event of failure to ratify the divorce agreement by the House of Commons, it will be possible to arrive at April 12, then Great Britain is out.
Yesterday the London Stock Exchange closed at +0,91%. The Bank of England, which yesterday left rates unchanged, published a survey which shows that 80% of companies believe they are "ready" to handle the 'no deal' scenario, an increase compared to 50% in January. But the popular petition to stay in the EU yesterday reached two million signatures on the Parliament website.
MILAN +0,2%: TODAY THE MISSION OF XI
The fog on the Brexit front, as well as the difficulties of German banks, held back European stock lists yesterday, which recovered in the afternoon thanks to the boost of US data.
Milan rose by 0,2% to 21.373 points on the day of Xi Jinping's arrival.
“The Italian government hopes to increase exports to China by 7 billion euros,” said the undersecretary of the ministry of economic development Michele Geraci. In addition to the preliminary agreement on the "Belt and Road", the signing of about thirty industrial agreements is also expected.
Emmanuel Macron, Xi's next guest, extended the meeting to include Angela Merkel and Jean-Claude Juncker, to underline the common European front towards Beijing.
Down in Frankfurt -0,49%, folded by the thud of Deutsche Bank (-4,10%).
THE "WAR" OF GLASSES ON THE AIR IN PARIS
Flat Paris, -0,07%, scene of the challenge of EssilorLuxottica, -6,55%, overwhelmed by the clash between the main shareholder and executive chairman Leonardo Del Vecchio and the vice chairman Hubert Sagnières: The manager Dolfin (Del Vecchio) accused French reacted by defining the attitude of the Italian partner as "harmful for the company and for all its shareholders". The challenge focuses on the figure of the new CEO who will have to be identified by 2020. Del Vecchio places all his cards on Francesco Milleri, former CEO of Luxottica. The French oppose the attempt "to take over the company to the detriment of the other shareholders": the merger, it is now clear, was badly planned. Since the beginning of the year, the stock has lost about 10% since the beginning of the year against the +15% recorded by the Cac 40 index.
SPREAD TO 241 POINTS, THREE BILLION CTZ INCOMING
The bond market is positive. In closing, the yield differential between Italy and Germany on the ten-year stretch stood at 241 basis points, after having reached 245 during the session.
The ten-year rate stops at 2,446%, after closing the previous session at 2,425%.
At the auction on Tuesday 26 March, the Ministry of the Economy will offer between 2 and 3 billion euros between Ctz November 2020 and 10-year Btpei. In particular, Via XX Settembre will make available to investors between 1,5 and 2 billion in the eleventh tranche of the CTZ in November 2020 and between 500 million and 1 billion in the twentieth reopening of the BTPEI in May 2028.
RUMORS SUPPORT TIM AND FCA
In Piazza Affari, the star of Stm shone (+4,4%), driven by the rally of the Philadelphia semiconductor index, by the positive forecasts for the current year of the US Micron and, above all, by the recovery in the prices of the main customer : Apple.
Two blue chips advance on the wave of rumors. The rumors about the possible sale of the Brazilian subsidiary supported Tim + 1,3%. The prospect of a merger with Peugeot keeps attention high on Fiat Chrysler, +0,4% on a negative day for the European automotive sector.
HISTORICAL RECORD FOR ITALIAN POSTAL
The low interest rate scenario depressed the banks, the worst sector in Europe (Stoxx Banks -1,4%, against -0,8% for Italy): Unicredit -1,7%, Ubi Banca -1,2%, among the big companies, Intesa defends itself the most, -0,7%.
Much more brilliant Poste Italiane which scored a new high after the results and forecasts released in recent days. Kepler Cheuvreux raises the target to 9,1 from 8,6 euros.
RECORD PROFIT FOR ENEL: THE COUPON RISES TO 0,33 EURO
The utilities supported by low rates are in great evidence. Continues the advance of Enel (+0,65% to 5,58 euros). The group result for 2018 was 4,79 billion, with a growth of 26,7 percent compared to the previous twelve months. The coupon rises to 0,33 euro per share, against 0.28 euro in 2018.
Terna +0,4%, he presented the update of the business plan: in 2023 the Ebitda is expected to be 2 billion euros. The dividend, between 2019 and 2021, is indicated as an average annual growth of 7%.
A2A (+0,1%) announced that it has signed a letter of intent with two public utility companies in the Veneto region (Vicenza and Verona) for the development of activities in the North East. Banca Akros has restarted coverage with a neutral rating and target price at 1,7 euros.
AUTOGRILL AND GIGLIO GROUP RUN
Autogrill rally (+4,5%). Goldman Sachs starts hedging with the Buy rating, targeting 11 euros.
Giglio Group is running (+6% to 3,53 euros). Banca IMI announced that it has started coverage of the company active in the field of electronic commerce, with a Buy recommendation and a target price of 6,20 euro (potential upside +80% approximately).
ASTM/Sias (+0,2%) have postponed the approval of the financial statements because an investigation is underway in Brazil on two former executives of the subsidiary Ecorodovias.
In the red Fila (-4%): Banca Akros confirmed the buy rating, cutting the target price to 17,3 euros from 21,05, after the publication of the 2018 results.
