Caught between the slowdown of the Chinese economy and that of the American economy, European stock markets closed the last session of the week down, on the eve of a field weekend for the vote of the British parliament on the Brexit agreement. And from Washington, where he is visiting, Mario Draghi warns: there are "slight signs" of overvaluation in the financial and real estate markets of the Eurozone, which generate a risk for stability at a time when the economy is slowing down.
Piazza Affari dropped 0,24% and fell to 22.321 points, despite the good performance of financial stocks. They are similar Frankfurt -0,15%; Madrid -0,14%; London -0,46%. The Paris budget is heavier, -0,65%, due to the thud of Renault (-11,5%), which announced the cut in the guidance on the 2019 results and infected the sector at European level. In Milan, the former Fiat girlfriend lost 2,37%.
Wall Street continues weak, after a jarring opening and despite new satisfactory quarterly results. The super-index of the economy disappoints in September: the Conference Board announced that this super-index, which provides a forecast on the trend of economic activity for the next 6-12 months, has a negative change of 0,1%, down compared to the previous reading which stopped on parity. The market was aiming for a 0,1% gain.
The disappointment adds up to that for Chinese growth of 0,6% in the third quarter, lower than the 6,1% expected and in fact the lowest for 27 years. The trade war is not good for international trade and perhaps not even for the election campaign of the American president, but despite this Donald Trump perseveres in his policy. Tonight, US tariffs also came into force on 7,5 billion dollars of goods imported from European Union countries. The tariffs will mainly affect Germany, France, Spain and the United Kingdom.
Italy is being hit, especially in cheeses and Americans will have to pay about $5 more for a kilo of real Parmigiano Reggiano. Coldiretti calculates a 20% drop in sales of products affected by the duties. Another drop added to the sea of stagnation problems, also reported today in the Bank of Italy quarterly bulletin where we read that in the third quarter of the year Italian industrial production fell by 0,5%. In this context, a more expansive budget law is invoked above all by the manufacturing world, while many criticisms of the 2020 budget also come from the majority itself, with the parliamentary process appearing to be getting complicated.
The ups and downs session for bonds which closed negative: the spread between Italian and German ten-year bonds rose to 131 basis points. However, Bank of Italy announces that in the summer foreigners returned en masse to purchase Italian securities: "overall in the first eight months of the year, foreign investors made net purchases of Italian securities for 98 billion euro, of which 81 in public securities (equal to the amount of net issues of the Treasury in the same period)".
Meanwhile, the European Council confirmed the appointment of Christine Lagarde as president of the ECB for the next 8 years. You will replace Mario Draghi from November XNUMXst.
The euro remains well matched against the dollar and trades at 1,158. The cross is also up with the pound at 0,8654. Gold is trading weakly around $1495,25 an ounce. The cooling down of the economy scares oil, like Brent: 59,61 dollars a barrel, (-0,5%).
In Piazza Affari, Bper +2,22% is the best stock, thanks to a favorable recommendation from HSBC analysts, but all the banks are positive. Off the main list, Popolare di Sondrio gained 0,44%, after the ECB rejected the amendments to the statute for the acquisition of Cassa di Risparmio di Cento.
Unipolsai also shines +1,78% on the Ftse Mib; Nexi +1,75%; Hera +1,34%; Juventus +1,23%.
Sales hit Moncler -3,42%; Leonardo -3,26%; Pirelli -2,59%; Fiat; Campari -2,29%; Ferrari -1,86% (140,05 euros per share), on which JP Morgan has set a target for December 2020 at 156 dollars.
Telecom loses, -0,58%, on the day of the appointment of the president who takes the place of the outgoing Fulvio Conti
