Wall Street's three major indexes also closed in deep red yesterday capping a Black Thursday for financial markets. Among the heaviest stocks: Kraft -3% after reporting a 40% drop in quarterly profit. Twitter -3%, corrects after yesterday's +20%.
Spotlights turned on today on the new jobs that the US economy generated in July.
All the main European Stock Exchanges also fell: London -0,5%, Paris -1,5%, Frankfurt -1,7%, Madrid -2,2%.
The correction of the price lists takes place on the day of the publication of a data which confirms how serious the problem of low inflation in Europe is. In Italy, prices fell by 0,1% compared to the previous month: the index is equal to +0,1%.
In Piazza Affari, the Ftse Mib index lost 1,5%.
The bond markets are calm: the yield of the 10-year BTP is unchanged since the closure, a very modest change even for the Bund.
The euro falls slightly against the dollar to 1,338 from 1,339 at the close, a minimum in the last 9 months
The drop in oil prices continues for the fourth consecutive day, the WTI-type crude future trades at 99,5 dollars a barrel: July, a terrible month in terms of geo-strategic events, is about to close with a loss 4,5%.
ARGENTINA
The significant event of the day however remains the technical default of Argentina, triggered by the effect of the non-payment of coupons equal to 539 million dollars. The negotiation between Argentina, the group of bondholders who refused the reduction of their entitlements and the same judge who agreed with them, fell through on Wednesday night: Standard & Poor's declared Argentina in default
The Buenos Aires Stock Exchange lost 7%. The oil Ypf and the banks are heavy.
BANKS ESPIRITO SANTO
The troubles of. weigh on the European banking sector Banco espirito santo, which collapsed after announcing a half-year loss of 3,5 billion euros. The title loses 38% in Lisbon. The buc of one of Portugal's major banks had modest effects on Portuguese government bonds, the 4-year yield rising by 3,59 basis points to XNUMX%.
The banks go down in Piazza Affari.Unicredit -3% Intesa Sanpaolo -2,9% Where's Banca -2,7% Mediobanca -2,8% MontePaschi -2,5%.
GENERAL
Among the insurance companies UnipolSai loses 4%.
Generali instead it gained 2% after announcing that it closed the first half with an operating result up 9,5% year on year to 2,51 billion euros, above the estimates of some analysts. The operating result for the second quarter was better than expected at 1,25 billion thanks to the excellent performance of the Non-Life business.
Life business result in line with expectations, suffering from the drop in investment income.
Solvency I margin slightly higher than 162% (164% pro-forma).
Net profit lower than expected due to the write-down of Ingosstrack for 190 million.
Azimuth is down 3,3%, Mediolanum loses 2,5%.
FIAT / CNH
Historic day for Fiat -2,7%. The last meeting is held in Turin before the merger into Dutch Fiat Finance which will take on the name of FCA. Several institutional investors are on a war footing: the ISS proxy fighter has advised the public to vote no. The reason? The new statute recognizes permanent shareholders (see Exor) a double value for the shares, to the detriment of contestability.
Cnh Industrial +3,7% surprised all those who had bet on a bad quarter and on a cut in the indications for the whole of 2014 in the wake of the Caterpillar accounts.
The tractor and construction equipment company, on the other hand, reported significantly above expectations for the second quarter, also confirming its estimates for the full year of revenues of 32 billion dollars and of earnings per share before restructuring charges between 69 -74 cents.
Industrial debt at the end of June was 3,7 billion, down from 4 billion at the end of March.
ENI, ENEL, FINMECCANICA
Enel closes down 0,2%. In addition to the data for the quarter, the utility communicated the reorganization of activities in Latin America.
Among the utilities A2A -2,6% Snam -1%.
Eni closed down by 1,5%. The major closed the second quarter of 2014 with strong growth but below expectations. Adjusted operating profit for the second quarter was €2,73 billion (+39,3% year-on-year), the consensus expecting €2,86 billion. Exploration & Production division adjusted EBIT stands at 2,98 billion, 200 million
Tenaris -3,4% Saipem .2,5%.
Finmeccanica closed down by 1,5%.
TELECOM /MEDIASET /LUXURY
in luxury, Yoox -2,2% after the data for the quarter, it had started up by 4%. Ferragamo -1,6%
Telecom Italy loses 3,2% e Mediaset the 2,8%.
The worst blue chip is World Duty Free -4,4%.
