The big cold has fallen on stock exchanges. After China and the Emerging Countries, the US locomotive is also showing signs of slowing down. And the markets have taken note of it. The Tokyo Stock Exchange, one hour after closing, lost 3,8%, Hong Kong over 2,5%. Shanghai is saved, closed for holidays until Thursday.
Wall Street, busy digesting the tapering, reacted with an equally violent decline. At the end of the session, the Dow Jones index lost 2,08%, the S&P 500 around 2,2% and the Nasdaq 2,61%.
Under the pressure of the data arriving from the USA, Europe lost ground in the afternoon: the Paris and Frankfurt indices lost 1,3%, Madrid -2%, London -0,6%. In Europe, the Stoxx index of banks is the worst with a drop of 2,5%. In Milan, the worst stock exchange in Europe, the FtseMib index finished down by 2,6%, with sharp declines for all blue chips and in particular for banks.
The dollar weakens to 1,353 against the euro, and oil: Wti at 96,8 dollars a barrel (-0,8%), Brent at 105,6 dollars (-0,7%). Gold, on the other hand, recovered, up 1,6% to 1.264 dollars an ounce.
US INDUSTRY, THE WORST DROP OF THE LAST 20 YEARS
The markets thus welcomed the inauguration of Janet Yellen as head of the Fed, with a dramatic message. The selling was triggered by data from the ISM, the US version of Europe's PMI, which fell 5,7 points in January.
It was the worst performance since last May and the fourth time in the last 20 years that the index has dropped in a month by more than 5 points. The data was influenced by the polar vortex that hit the country last month, but there are other negative signs: the drop in orders, above all, the largest since 1980.
Meanwhile, the return of fears of a default contributes to making the picture worse: the debt ceiling, according to Treasury Undersecretary Jack Lew, must be raised as soon as possible.
Meanwhile, Ben Bernanke has already found work. The former Fed chairman has joined the ranks of the Brooking Institution: he will be in charge of researching policies "to support a more solid recovery after the great recession".
PERIPHERAL BOND, KEEPS THE DAM WAITING FOR DRAGONS
The Vix, the volatility index, jumped 14,5% to 21,07 points, highs in at least 13 months. Therefore, the rise in the bonds of the leading countries is not surprising: the ten-year T bond rises to 2.60% and the Bund to 1.64% while the periphery has lost some of its luster, but for the moment the sovereign debt of the periphery is holding up better than the markets equity.
Probably the holding is due to the expectation of some form of intervention by the ECB next Thursday, on the occasion of the directorate. Should Draghi disappoint, the music could change.
Meanwhile, Portugal's 2010-year government bond yield hit a new low since June 4,94 at 220% yesterday morning. The 3,77-year Italy/Germany spread fluctuates around 3,75 basis points, with a yield of XNUMX%, very close (XNUMX%) to what are currently the lows of the last three years.
INTESA ALSO DOWN, BUT LIKE THE BAD BANK
Banks were penalized across Europe (-2,6%) by the accounts of Lloyds Banking Group (-3,5%), which postponed the return to the dividend. And above all by the disappointing results of Julius Baer -6,6%, who struggles to digest the purchase of the savings division of Merrill Lynch.
In Piazza Affari the most substantial losses concern the Popolari banks: Banco Popolare-6,9%, Pop.Milano-4,3%, Pop.Emilia-6,9%, Ubi-5%. The reminder of the vice president of the ECB, Victor Constancio weighs heavily: the capital increases, when necessary, will have to be carried out immediately, before the stress tests in October.
Intesa also fell -2,84%, supported in the morning by the advances of the Financial Times on the project of an internal bad bank which would be given part of the 55 billion euro of non-performing loans. Unicredit -4%.
Difficult day also for insurance companies. Generali lost 2,4%. Mediobanca Securities lowered the stock rating from neutral to underperform, confirming the target price at 15 euro. Jp Morgan then reduced the target price on the share to 20 euros from 21 euros, leaving the rating unchanged at overweight. UnipolSai-2,3%.
FCA: CHRYSLER GOOD IN THE USA, FIAT BAD IN ITALY
A difficult day for Fiat which lost 3,5% despite the good sales figures of Chrysler (+8%) in America in January. Once again Sergio Marchionne has nailed the choice of testimonial for the Superbowl spot: social networks are overflowing with comments on Bob Dylan's "patriotic" performance. On Wall Street, Ford (-3,1%) and General Motors (-1,6%) are also down sharply.
A positive signal comes from car registrations in Italy in January (+3,24%). However, the Fiat group suffers, which saw a drop of 2,6% on the year to 33.304, with a market share of 28,27% from 27,97% in December 2013 and from 30,1% in January 2013.
Among the industrial stocks on the Milanese list, the best is Pirelli which lost only 0,3%. Finmeccanica -3,2%, StM -2,9%.
ENEL SLIDES ON THE EVE OF ACCOUNTS. FOR EQUITY IT'S BUY
Snam +0,25% was the only positive stock on the main basket. No sector was spared from the decline: Enel -2,8%. Equita Sim raised the weight of the share in its main portfolio by 50 basis points, reiterating the buy recommendation and the target price at 3,8 euro. Eni -2%, Telecom Italia -3%.
Autogrill -3,1% and World Duty Free -6,5% were also heavy, downgraded by Citigroup to Neutral from Buy. New session in the red for luxury: Tod's marked a drop of 3,26%. Equita Sim has included the share in the portfolio of "least preferred" stocks. Salvatore Ferragamo -3,87%, Luxottica -1,01% and Yoox -0,53% are also below parity.
IN THE MADE IN ITALY THERE ARE THOSE WHO SMILE
Positive day for some made in Italy champions. DeLonghi +4,43%. According to the Equita Sim experts, the group's preliminary revenues were in line with expectations, while the outlook for 2014 is more encouraging than the comments released after the first nine months. Piaggio also did well, gaining 0,79%,
Amplifon leap forward +5,11%, with Banca Akros which has raised the stock recommendation to accumulate from hold and the target price to 4,6 euro from 4,1 euro. Banca Profilo also rose +1,75%. On Thursday, the group will illustrate to the financial community the 2014-2016 business plan announced last week.
Massive sales on Molmed (-16,78%), which marked one of the worst performances in all of Piazza Affari. The BoD resolved to submit to the extraordinary shareholders' meeting a proposal to reduce the share capital from 27 million euros to 10,4 million euros, without cancellation of shares, and a paid capital increase for a maximum of 5 million. The proposals were made after losses exceeding one third of the subscribed and paid-up share capital.
