Euro down, European stock exchanges up. Dove Dragons, Once again, it has not disappointed the markets. In the wake of the decision to raise the purchase limit on individual government bonds from 25 to 33% and the confirmation that, if necessary, the Qe European could last beyond September 2016, the European markets have reared their heads. In Milan, the FtseMib index rose by 2,6%, the Paris Stock Exchange gained 2,1%, Frankfurt +2,6%. The ten-year BTP yield fell to 1,92%. The dollar clearly strengthened against the euro, falling to 1,110 from 1,122 at yesterday's close.
TOKYO DOWN, WALL STREET WAITING
But the effect of Draghi's words has not infected markets outside the European Union. Wall Street, already focused on today's labor market statistics (the last "heavy" data before the rate decision) closed with modest gains: Dow Jones and S&P +0,1%, Nasdaq down 0,4%. The Asian price lists are also uncertain. Tokyo loses 2,15%, hit by the negative data on wage trends. Chinese stock exchanges still closed, modest gains in Hong Kong +0,3%. Oil prices fell this morning: Brent traded at 50,59 per barrel (-0,2%), Wri at 46,64 (-0,3%).
US RATE RISE LESS LIKELY AFTER ECB
Draghi's worries on the eve of the G-20, dedicated almost entirely to the Chinese crisis, and the Fed's decisions on rates (appointment scheduled for September 17) could also favor the Fed's doves. a Yellen raising rates in 2 weeks, with such a worried and accommodating Draghi?” asks Giuseppe Sersale, strategist of Anthilia: "In the event of an increase, the divergence between monetary policy decisions would be such as to produce, in the short term, a collapse of the Euro-dollar relationship, a rather indigestible development for the Fed".
The president of the ECB, on his birthday, was not at all optimistic about the future. On the contrary. Draghi said the ECB considers a weakening of China's growth prospects possible with the risk of negative repercussions on confidence in Europe as well, so deflation is a possible scenario for the coming months. The European Central Bank lowered its growth forecasts for the euro zone to +1,4% for 2015, from +1,5% in the June estimate. The forecasts for 2016 and 2017 have been cut respectively to +1,7% from +1,9%, and to +1,7% from +1,8%.
According to Marco Valli, chief economist for the euro area at Unicredit, it demonstrates that “the ECB is in a state of high alert. He is monitoring developments closely to assess whether the deterioration in the eurozone price outlook is temporary or more lasting. In the latter case an expansion of the purchasing program would be inevitable”.
This is also the opinion of William Murray, spokesman for the Monetary Fund: the Federal Reserve, he said, is in a position to postpone the rise in interest rates in the face of the deterioration of the global economy.
FINANCE BOOM – BLOOMBERG: 10 CUTS FOR UNICREDIT
The rush to purchases affected all sectors of the European Stock Exchanges, in particular on raw materials stocks (European Stoxx of the sector +4,6%), on oil (+3%), on the Automotive (+3,2%) . The Eurostoxx index of the banking sector gains 2,2%. The financial sector advances in Piazza Affari by 2,8%. At the top of the standings MontePaschi +4,7% ahead of Banco Popolare +3,65%. Intesa Sanpaolo gains 2,2%. Accelerate Unicredit +3,4%. According to Bloomberg reports, the group is reportedly considering cutting over 10 million jobs in Italy, Germany and Austria. ?Leap forward for Azimut +5,5% and Unipol +4,8%-?.
AUTOGRILL AT THE TOP, BALZO DI TENARIS
There are not a few stocks that have recorded increases of more than 4%. At the top of the list is Autogrill +7%. Kepler-Cheuvreux has decided to raise the recommendation to Buy from Hold. The target price was adjusted to 8,80 euro from the previous 8,50 euro. Strong recovery Tenaris +5,64% on the wave of the rebound in oil prices. Eni +2,4%%. Saipem also restarts +1,6% after the crash on the eve. The group announced a few minutes before the close of the session that it had been awarded an onshore E&C contract in Chile worth $560 million. HSBC lowered the target price to 5,50 euros from the previous 6 euros, confirming the Reduce recommendation. New orders also for Trevi +2,6%.
Yoox's star shines +4,9%, after the departure of the founder of Net a Porter on the occasion of the completion of the merger. New decline in Hong Kong for Prada -1,5%. Group chairman Carlo Mazzi, in an interview with Reuters, said the company does not intend to cut stores in China but will limit expansion projects and renegotiate rents in Hong Kong and Macau. Telecom Italia +3,62% entered Kepler Cheuvreux's 'European Large Caps Selected List'.
