The Big ones are pushing up the price lists, thanks to the commitment of the presidents. From China comes, via a scoop from the South China Morning Post in Hong Kong, that President Xi could meet the US delegation at the end of the talks on Friday, confirming that the negotiations are moving forward. Tonight Bloomberg wrote instead that the White House is evaluating the possibility of postponing the introduction of tariffs on Chinese goods entering the United States by thirty days: the current deadline is the beginning of March.
The optimism is transmitted to the currencies. The dollar strengthened against the yen for the fourth consecutive day at 111,03. We're back on the highs since Christmas. The US currency also appreciates against its main Asian counterparts, against the Indonesian rupiah and the South Korean won. Conversely, the euro slowed down, yesterday closing 0,6% down, penalized by data on industrial production in the euro area and by the political crisis in Spain. On the day of the vote in the House of Commons on Theresa May's latest proposal regarding divorce from the European Union, the pound recovered slightly against the dollar at 1,287.
But the markets are already focused on the upcoming hearing of Fed Chairman Jerome Powell in Congress who will give more precise indications on the central bank's next moves: inflation data do not suggest the risk of a tightening: stock markets can celebrate Valentine's Day with serenity .
ASIAN EXCHANGES LATCH. CHINESE TRADES WELL
Slight downward correction of Chinese Stock Exchanges: Hong Kong -0,3%, Shanghai Composite -0,2%.
During the night, data on the Chinese trade balance were released, conditioned by the recent Lunar New Year holiday. Exports, expressed in dollars, rose by 9,1% in January against a forecast of -3,3%. Imports fell by 1,5% (economists' estimate -10%).
Tokyo's Nikkei moved little after the publication of Japan's GDP data, in the fourth quarter the expansion was 0,3% on a quarterly basis. In the June-September period there was a contraction of 0,7%.
Oil continues to rise: Brent at 64 dollars, driven by the Saudi decision to cut production.
WALL STREET CELEBRATES THE RETURN OF LEVI'S AFTER 30 YEARS
The energy sector was the brightest on the US stock exchanges, up for the fourth consecutive day: Dow Jones +0,46%, S&P 500 +0,30%. The Nasdaq +0,08% was less moved.
Rising sharply after the Cisco Stock Exchange, after the results. But the real news is the announcement of the return to the Stock Exchange of Levi Strauss & Co., which left Wall Street more than 30 years ago. Losing shots are American Eagle and Abercrombie & Fitch.
European lists are also showing great dust, despite the fact that industrial production in the Eurozone has confirmed the slowdown that has been underway for several months now (-0,9% in December against a forecast of -0,4%). Not even the legitimate but surprising decision of the Banco de Santander not to proceed with the repayment of a Coco bond has stopped the run of the bond market, supported by the prospect of even weaker rates. And so the Bull advances, regardless of the old (Brexit, Italy) and new (elections imminent in Spain) political challenges.
BUSINESS PLACE STILL AT THE TOP, VOLTAGE IN MADRID
The Milan Stock Exchange +0,93% closed the session on the new highs of the year at 20.047 points. Since the beginning of the year, the gain is 10%, the best result in the Eurozone (Eurostoxx +7%).
The other indices were also positive. Frankfurt rises by 0,38%; Paris +0,35%. Only Madrid remains flat after the rejection of the 2019 budget law proposed by the socialist government of Pedro Sanchez, which paves the way for early elections.
The Spanish crisis weakens the Euro which loses 0,3% against the dollar to 1,128.
BREXIT, LAST CALL. SWEDEN RAISES RATES
London +0,82%. The pound was weak at 1,288, on the eve of Parliament's vote on Theresa May's latest Brexit proposals. The prime minister has asked the House of Commons for more time to reach a new agreement with the EU. For the Labor leader Corbyn "the government continues to buy time and presents itself with new excuses and postponements" to get to the point where MPs will be "blackmailed" and forced to vote on the executive's agreement.
Outside the Eurozone, however, the Swedish crown appreciated, after the central bank confirmed its willingness to proceed with another rate hike in the second half of the year.
THE SPREAD FALLS TO 266 AFTER THE RECORD AUCTION
Btp spreads and yields are down on another positive day for the Italian secondary sector, galvanized by the results of medium-term placements.
In the auction, limited only to 3- and 7-year BTPs in light of the recent syndicate launches on 15- and 30-year maturities, the Treasury assigned all the 4,5 billion offered with rates falling to their lowest since last May. The demand for the three-year BTP was very strong, with the bid to cover reaching 1,77, the highest since July.
The Italy-Germany spread on the ten-year segment slipped below 270 basis points reaching 266 in the final, the lowest level for a week (compared to 274 at the beginning).
The 2,80-year reference rate fell below 2,78%, stopping at 2,87% from XNUMX% at the start of the session.
The trend does not only concern Italy. Yesterday Germany placed 1,18 billion in the reopening of the 30-year Bund with a rate decreasing to 0,72% and Portugal which assigned 705 million in the 10-year bond and 295 million in the 15-year, in both cases with falling rates.
JUVE, RONALDO BOND ALSO ON GOAL
Juventus +0,45% in Piazza Affari took advantage of this positive context to place the "Ronaldo bond", i.e. a five-party non-convertible debenture loan for an amount of 175 million euros reserved for qualified investors. The market response was good: orders exceeded 250 million euros. The bond, which pays a coupon of 3,375%, offers a premium of 173 basis points over the October 2024 bond of parent company Exor, which has a BBB+ rating from S&P.
FINECO AND AZIMUT KEEP THE RACE, UNICREDIT WELL
Asset management and banks were the main protagonists of the session in Piazza Affari. At the head of the race Fineco Bank, the best of the main list with an increase of 4,94%, ahead of Azimut +4,17% which announced positive inflows in January of 554 million euro and Banca Generali (+4,1 %).
The Italian banking index was also tonic, rising by 1,17%, outdistancing the European one, which stood at +0,3%. The big names are doing well: Intesa + 0,35%, Unicredit flies + 2,16%.
Down by 0,73% Bper. In the afternoon, Moody's improved the bank's outlook to 'positive' from 'negative' after the announcement of the acquisition of Unipol Banca from Unipol +0,66%. For the latter, the American agency has placed the assigned ratings under observation for a possible upgrade. Ubi -1,03%.
MPS ALSO RUNS, PRYSMIAN BOUNCES
Mps runs off the main list: +3,58% after the interview with CEO Marco Morelli, who spoke of possible mergers for the institute. as a decisive element for the development of the bank in the medium term. Profit taking for Banca Ifis: -4,83% after the rally of the previous days (+30% in two sessions).
The rest of the blue chips also performed well, with the exception of Stm (-0,37%) and Ferrari (-0,32%).
REMBANCE THE SUN 24 HOURS (+20%)
Prysmian rebounds by 3,55% after the declines of recent days in the prospects of the antitrust fine in Brazil.
The other industrialists performed well: Brembo +2,5%, FCA +1,57%, CnH +1,29%, Leonardo Spa +0,98%.
Off the main list Il Sole 24 leaps by 19,94% with volumes almost 10 times higher than the average of the last 30 days. The stock has lost 9% year-to-date and nearly 60% in 12 months.
Propeller also flies: +14,1% after the results.
