Contrasted markets awaiting Washington's choices. Donald Trump, officially accused of impeachment by Congress, must decide whether or not to postpone the increase in tariffs on Beijing, otherwise it will take effect from next Monday. Tonight, meanwhile, the Fed chairman will give the conference after the board meeting. The last hours of a difficult electoral campaign are being consumed in London. The latest polls show that the lead of the Conservatives is smaller than expected: Boris Johnson is in the lead, but not enough to handle Brexit. In this setting, the markets live the last day of waiting, without drama.
THE WSJ: “POWELL WILL LET INFLATION RISE”
Without a precise direction, the Asian price lists. The Hong Kong Stock Exchange's Hang Seng Index is up 0,3%. The CSI 300 of the Shanghai and Shenzen lists is at parity, the Tokyo Nikkei loses 0,3%.
Same script for US Stock Exchanges: Dow Jones and S&P 500 -0,1%. NASDAQ -0,07%.
Modest moves in the foreign exchange market, where Jerome Powell's press conference is expected tonight. The Wall Street Journal reports that the leaders of the Federal Reserve agree to leave room for inflation to grow even beyond +2% per year, ie beyond the level that should lead the central bank to take countermeasures.
THE XNUMXTH YEAR OF TOKYO IN POSITIVE SOIL
The yield on the 1,83-year Treasury Note rises to XNUMX%. Japan's XNUMX-year bond is one step away from having a positive yield again: it hasn't happened since April.
The WSJ also anticipated the probable postponement of new tariffs against Beijing. The Democrats, despite the thrust on the impeachment, have agreed to the signing of the new agreement on trade with Mexico and Canada, a measure already discounted by the operators.
Pound slightly down this morning, on the eve of the vote.
ARAMCO, THE PRINCE WANTS 2.000 BILLION
Oil is weak in the day of the debut of the Aramco listing. A boom in purchases is announced, which will bring the stock closer to a valuation of two trillion dollars, as desired by Prince Mohammed Bin Salman. Thanks to hasty but effective methods: the threat of arrest for the wealthiest families in the country if they do not do "their duty".
EU, TODAY THE GREEN PLAN IS UNDERWAY
In the euro area, while awaiting tomorrow's directorate from the ECB, the spotlight will be on Ursula von der Leyen's first moves: today the European Commission will present the plan for reducing emissions. According to the preliminary drafts, it is a 35 billion program that aims to activate investments per 100, with the involvement of private individuals.
BUSINESS PLACE AGAIN ABOVE 23 THOUSAND POINTS
The Milan Stock Exchange was one of the worst in Europe on Monday. Yesterday, on the contrary, the FtseMib index was the best, against -0,4% of the Frankfurt Dax, despite the surprise rise of the Zew index on the confidence of the largest economy in the euro area: on December 10,7, 2,1 against expectations of a zero change and after the fall of XNUMX in November. This too is an index of the volatility of the stock markets on the eve of the key appointments of the week: the meetings of the major central banks and the UK elections.
Piazza Affari has risen above 23 points to 23.122.
In October, Italian industrial production decreased by 2,4% compared to the same period of the previous year, slightly worse than expected. Over the past ten months, this indicator has always had a minus sign in front. The only good news coming from this data is the growth of the component linked to consumer goods.
Moderate contraction for Frankfurt, which suffers a drop of 0,27%.
THE ZEW RISES, DEUTSCHE BANK CUT ITS GOALS
Deutsche Bank cut its revenue growth target, blaming low interest rates on Investor Day. The German bank expects banking revenues to grow just 1% by 2022, half of what was estimated in July.
Undertone London (-0,28%). In October, UK GDP increased by 0,7%, compared to the same period last year. This is the weakest growth rate ever recorded in the last seven years.
Little movement in Paris (+0,18%), despite the good trend of industrial production. Today the government should present the measures for the reform of the pension system. For the sixth day in a row, protesters went on strike and protested against the plan. Madrid -0,30%.
THE SPREAD DOWN TO 154, BOT AUCTION TODAY
The BTPs turned positive in the final, at 1,24%. The spread with the Bund stopped at 154 points.
Today the Bot auction is scheduled: at the end, the yield on the annual Bond trades between -0,164 and -0,17%, down from the -0,135% in mid-November.
Close to the closure, the upward movement pushed the yield of the 2-year BTP back into negative territory again at around -0,02%.
THE CDP HYPOTHESIS GIVES WINGS TO ATLANTIA
At the head of the list is Atlantia (+3,4%): Cdp could enter the capital, a novelty that could prevent the revocation of the concession.
Utilities were very positive: Snam +1,2%, Enel +1% and A2A +1,3%.
Leonardo +1,6% after UBS revised upwards the recommendation on the stock to 'buy' with a target price of 12,30 euros.
UniCredit +0,8%. Banco de Sabadell analysts raised the target price from 15,50 to 17,20 euros, reinforcing the Buy rating. Banca Bper is also making progress (+1,1%).
MEDIOBANCA OPENS THE SITE OF THE NEW BYLAWS
Mediobanca stands out (+1,6%). The institute has started work on changing the statute.
Fiat-Chrysler -0,6%. In November, the Chinese car market recorded a decline of 3,6%: it is the seventeenth consecutive month of decline. Carlos Tavares, the managing director of Peugeot PSA, reiterates that the pre-contract for the start of the merger works will be signed shortly.
SAFILO BETWEEN LICENSES AND CUTS, BOOM OF SERIALS
Of note are the fireworks on Safilo (+10,6%) after the renewal of the licensing agreement with Marc Jacobs, surprising because it is an Lvmh brand. However, Equita believes that the Fendi and Givenchy brands, still owned by Lvmh, expiring in 2021 and 2022, will pass to Thelios (jv Lvmh-Marcolin). Meanwhile, the company has announced a drastic restructuring project: the new four-year industrial plan provides for around seven hundred redundancies in Italy.
Stable Sanlorenzo debut in the Star.
Among the thin stocks, Seri Industrial rose by 49%, benefiting from the approval of the EU Commission of the European investment program in the battery sector.
