An apparent calm reigns on the stock markets of global finance. After the chills that characterized the beginning of February, the markets, while not shining, recovered part of the lost ground. Operators, now resigned to the forthcoming hikes in US rates, are struggling to find ideas for new upward initiatives for now. In Europe, caution is suggested by the outcome of the Italian vote, but also by the referendum of the German Social Democrats on the new Merkel government. The new tensions on the Brexit front also contribute to complicating the path of the Eurozone.
And so, with the euphoria gone for now, the stock lists have rediscovered the red: Wall Street, after eleven consecutive months on the rise, recorded a drop of 2,7% in February, the worst for two years now. Europe fared no better: the Stoxx 50 index fell by 4,2%, Frankfurt by 5,3%. Milan defended itself better: -3,5% in the month preceding the elections, surpassed only by Paris (-2,5%). In short, the roaring months are only behind us but the fear of collapse, evoked by the sharp declines four weeks ago, has faded: the markets are resigned to swallowing Jerome Powell's medicine, in the hope that it will not be too bitter.
FLAT WALL STREET, FLY BOOKING (+7,7%)
While awaiting the second hearing of the Fed president, this time in the Senate, US stock exchanges recorded modest changes: the Dow Jones index lost 0,15%, the S&P 500 +0,03%. The Nasdaq advanced 0,16%.
Few news on the price lists: Celgene collapses (-8%) after the non-approval of a drug for multiple sclerosis. The best performance was by Booking (formerly Priceline): the travel ticket booking site rose by 7,7% after the accounts.
THE SPOTIFY IPO IS LAUNCHING: 1 BILLION DOLLARS TARGET
Spotify presented the application for admission to the Stock Exchange yesterday evening at the Nyse. The music streaming site aims to raise a billion dollars in a direct IPO, without road shows, issuance of new securities or involvement of banks.
Monsanto is making progress (+0,77%) pending the imminent go-ahead from the European Commission for the sale to Bayer.
76% of companies in the S&P 500 index have so far reported results that are higher than expected.
BONDS HOLD DOWN, THE DOLLAR RISES
The race on bonds cools down and the yield on the T Bond slips to 2,8806%. The two-year share remained unchanged, yesterday it jumped to 2,28%, the highest for two years.
The euro/dollar cross at 1,219 is for the first time since mid-January below the 1,22 threshold.
US CONSUMPTION (+4,6%) MORE LIVELY THAN GDP (+2,5%)
US GDP grew by 2017% in the fourth quarter of 2,5, below forecasts, despite the simultaneous growth in consumption (+4,6%). A new record deficit in the trade balance is looming, but a sharp drop in inventories is not excluded, to the advantage of a forthcoming recovery.
The sharp rise in US oil stocks, which grew by 3 million barrels, weighed on crude oil prices: Brent fell to 65,82 dollars (-1,2%).
In Piazza Affari, Eni (-0,8%) and Saipem (-2%) closed down. The two companies compete in different consortia for a contract in Nigeria. Tenaris -1,7%
WEAK INFLATION, EUROPEAN EXCHANGES IN RED
European stock exchanges are weak despite the support of the dollar's recovery. Italian inflation grew less than expected in January (+0,1%). On an annual basis, the change is 0,6%. The figure for the Eurozone also fell (1,2% from the previous 1,3%). The markets are now focused on the PMI data to be released in the course of the morning to understand whether or not the strength of the recovery is running out.
In Milan, the Ftse Mib index lost 0,51%, to 22.607 points. Piazza Affari is the only Stock Exchange to maintain a modest gain since the beginning of 2018.
The other European lists are in the red: Madrid -0,6% (but -5,4% in February). Frankfurt -0,44% like Paris (-2,5% in February).
LONDON TRUMPS ON IRELAND: BREXIT MORE DIFFICULT
The worst result is that of London: -0,69% despite the sharp drop in the pound, traded at 1,3772 against the dollar, at its lowest since 9 February. The British currency suffered from the halt in negotiations with Brussels, which ran aground on the rock of the borders between Ulster and Ireland. The Brexit deal is thus back on the high seas.
BTP, FOURTH SESSION UPWARDS. VOTING IS NOT SCARY
The rally in Italian government bonds continues, progressing for the fourth consecutive session: operators continue to minimize the risks of the next vote.
The ten-year BTPs closed at 1,98%, spread against the Bund below 132, below the low of early February (125) but far from the peaks at the beginning of the year (160).
Yesterday, the Treasury placed 1,763 billion Btp and Ccteu, which went to auction on Tuesday, to reopen. Funding in 2018 has already reached 24% of the ministry's needs (387 billion for the entire year).
Germany yesterday raised 2,413 billion in 0,67-year bunds. The yield remained stable at XNUMX%.
Today, requests from France (up to 8 billion) and Spain (5,250 billion) are arriving on the market.
On a slow day for the stock exchanges, Piazza Affari was certainly no exception.
The banks moved little: sector index -0,16% against -0,49% at the European level. Unicredit +0,3%, Intesa unchanged. Banco Bpm decreased (-1,1%).
The state of grace of Poste Italiane continues (+0,8%) which lengthens after the 6% leap on the results for the year: Kepler Chevreux has strengthened the buy, target at 8,20 euros from 7,8.
AIR OF TRANSFER FOR FERRAGAMO, THUMP OF SAFILO
The strongest emotions were reserved for Salvatore Ferragamo (+2,2%) who announced it surprisingly the release of CEO Eraldo Poletto coinciding with the board meeting on the balance sheet set for 8 March. The resignation of the manager, according to some rumors, would be linked to the prospect of a sale of the Florentine maison.
In the luxury sector, Luxottica recovers (+0,73%), penalized after the balance sheet data. Sharp setback for Safilo (-2,5%) after the non-monetary devaluation for 190 million.
SPAIN IS GOOD FOR MEDIASET
Among the positive notes also the progress of Mediaset (+1,42%) supported by the accounts of the Spanish subsidiary: profit for the year up 15,5% to 197 million, the best result since 2008.
Telecom Italia is also making progress (+0,8%): in Brazil an agreement was signed with Oì for the sharing of infrastructures.
CAMPARI RED, PIRELLI ALSO BRAKES
The most negative data of the day was the sharp decline of Campari (-3,3%), on volumes three times higher than the average in the wake of the sales that took place on Tuesday, while the conference call was underway. Yesterday Goldman Sachs reiterated its sell opinion (target price at 5,95 from 6,10). Rbs (outperfom, from 7 to 6,80) and Kepler Chevreux (6,20 from 6,40) also lowered the target.
But it was a tough session for several blue chips: Pirelli dropped 2,7%. Buzzi also fell (-2,07%).
JUVENTUS RETURNS TO RUNNING
Weak utilities. Italgas sells 1,49% after completing the purchase of Ichnusa gas. Enel was also in the red (-1,2%).
Outside the main basket, the leap of Juventus (+2,43%) should be noted, despite the drop in profit in the first half to 43,4 million and the forecast of closing in the red at the end of the year.
