Piazza Affari turns negative at the end of the morning - 0,26% and is about to say goodbye the landing in Rome of Xi Jingping in line with other European markets. The other price lists of the Old Continent slip into negative territory, starting with Frankfurt -0,55% which pays for the drop in Deutsche Bank -4% and other credit instruments. Paris -0,22% ahead of Madrid -0,45%. The weak pound favors the rise of London +0,3%. In the middle of the day, the Bank of England will announce the decision of the monetary policy committee on rates and will publish the minutes. The euro/sterling cross traded at 0,864 (yesterday the pound lost 1%).
The expansive tones of the Fed, which guaranteed rates at current levels, 2,25%-2,50%, until the end of the year, and could only consider a hike in 2020, produced a double result: on the one hand, it prevented the correction of share prices, which remain at their highs on the other hand has accelerated the decline in bond yields, now crushed to their lows for the year: the 2,44-year rate drops to XNUMX%, Bunds at 0,043%, the lowest level since October 2016. The spread stands at 240 points. The euro-dollar exchange rate rose to 1,141 yesterday evening at the close (+0,5%), this morning it is stable at 1,14.
The decline in the US currency is reflected in gold and commodities.
Gold took advantage of the drop in yieldsie of that of the dollar, increasing by half a point to 1.318 dollars an ounce.
The unexpected and very sharp drop in US oil inventories, and the Fed's declared support for the economy, prompted the price of Brent crude oil rose, which this morning marked new highs for the year at 68,7 dollars a barrel. Now it is down by -0,2% to 68,4 dollars, after yesterday's break (+1,5%).
Saipem +0,8%, Tenaris +2%, Eni +0,8%.
Stands out in the luxury sector the thud by EssilorLuxottica which loses more than 5% in Paris on the wave of tensions within the Board of Directors which exploded after Leonardo Del Vecchio, the main shareholder and executive president of the Franco-Italian group, accused executive vice president Hubert Sagnieres of violating the agreements and wanting to control the company alone. In an interview published by Le Figaro, Leonardo Del Vecchio accuses the French manager of appointing four key executives from Essilor without consulting him or the board.
The low interest rate scenario is depressing today banks, worst sector in Europe (Stoxx Banks -1,4%): weak Unicredit -1,3% and Ubi -1,4%, Entente defends itself more -0,6%. Still up Poste Italiane +1,2%. Kepler Cheuvreux raises the target price to 9,1 euros, after the presentation of the business plan.
The utilities sector was tonic, favored by the prospect of low cost of money. Enel +0,8% to a 10-year high, with a price of 5,5980 euros.
Terna -0,14%, presented this morning business plan update: in 2023 Ebitda is seen at 2 billion euros. The dividend, between 2019 and 2021, is indicated as an average annual growth of 7%. A2A +0,4%, announced that it has signed a letter of intent with two public utility companies in the Veneto region (Vicenza and Verona), concerning the possibility of developing activities in the North East.
Stmicroelectronics +2%. Yesterday in the aftermarket on Wall Street, the chip maker, Micron, stood out with a 4% increase after the
Quarterly announcements. The company says there is a recovery in demand for memory chips.
Prismian -1%. The maritime link between Scotland and Wales has been fully restored.
Vola Autogrill +3,5%. Goldman Sachs starts hedging with the Buy judgment, targeting 11 euros.
To report ASTM/Sias +0,5%, have postponed the approval of the financial statements because an investigation is underway in Brazil on two former executives of the subsidiary Ecorodovias.
