Le Olympics postponed to 2021, but it is still a season of historical records. The Dow Jones, for example, made the highest jump since 1933: +11,37%, a flight that can be explained by the formidable stimuli from the Fed to which was added yesterday the agreement between the White House and the Democrats on the package of measures to support companies and families. The law that Congress is expected to pass soon, probably in the next few hours, will allocate about 2.000 billion dollars. The provision will arrive on Donald Trump's desk, for signature, immediately afterwards, in any case during the course of this day. As usual, Europe will arrive later, but the prospects, after yesterday's Eurogroup, are positive: the Portuguese president, Mario Centeno, spoke at the end of the meeting of a "broad consensus" on immediate measures to be taken to cope with the troubles caused by the epidemic. The markets, after a historic day in its own way, try to lengthen the pace.
ASIAN PRICE LISTS ACCELERATE, TOKYO +6,5%
Tokyo's Nikkei gains 6,5%, driven by hedge fund coverings. An agreement is looming between Masayoshi Son and Paul Singer, owners of Elliott Partner: taking advantage of the collapse in prices, the two could withdraw the giant Softbank from the Stock Exchange.
Chinese indexes are advancing: the CSI 300 of Shanghai and Shenzen gains 2%, as does the Hang Seng of Hong Kong. The Central Bank of Beijing is studying measures in favor of credit institutions.
The Stock Exchanges of the countries that have limited the damage of the coronavirus the most thanks to an aggressive use of technology also take off: +4% the Kospi of Seoul, +3% the Taiex of Taiwan. Sydney +5,5%.
HERE COMES THE WASHINGTON MONEY. RIP BOEING: +21%
Wall Street's response to the bazooka (indeed, the atomic bomb) set in motion by the Fed was energetic, indeed epic. Boeing contributed above all to pushing the Dow Jones up: +21% after the promise that the Maxi 737's troubles would be resolved by the summer. The S&P 500 index closed at +9,38%, Nasdaq +8,38%.
"The damages caused by the stop to the economy are heavier than the benefits in the fight against the epidemic". Donald Trump promises that the normal activity of factories and services will resume by Easter, because "more people die here from road accidents than from this virus". Most scientists do not think so, who fear a strong growth in infections in the US.
GOLD BOOM: NEW YORK LACK OF INGOTS
Gold and oil positions recover. Gold gains 5% to around $1.610 an ounce, the highest since 2008. The premium between the benchmark futures and the spot price has soared to its highest level since 1980, on fears of a shortage of refined physical gold on the New York financial center, what is needed to hedge derivatives.
Brent oil is up 3% to $28 a barrel.
Euro slightly appreciated against the dollar, to 1,080 this morning.
EUROPE STILL DIVIDED ON CORONABOND
Yesterday was a day of strong rebounds also for European stock markets, heartened by the efforts of the Fed and the ECB. But the real game is now being played on the fiscal policy front, the subject of Thursday's summit of Eurozone leaders. It's here opinions differ: Centeno underlines the "broad consensus" on the use of the "existing tools" of the Mes. Holland and Germany are against unconditional forms of financial support, as proposed by France, Italy, Spain and Portugal. For the EU Commissioner for the Economy, Paolo Gentiloni, currently in quarantine, the Coronabonds are a measure that remains on the table. It will now be up to European leaders, in the video conference scheduled for tomorrow, to find the solution. Meanwhile, the numbers speak for themselves. The PMI indices, which measure the level of economic activity, collapsed in March to 31,4 (the sufficiency is above 50), worse than in 2009, when the minimum was 36,2.
FRANKFURT LEADS THE CHARGE OF EU STOCK MARKS
On Tuesday, Piazza Affari, up from the outset, recorded a rise of 8,93% to 16.948 basis points. The pink jersey went to Frankfurt (+11,40%), also galvanized by the pro-industry provisions launched by Berlin. The climate is the same almost everywhere: Paris +8,39%, Madrid +8,33%, London +9,35%, Zurich +7,86%.
GUALTIERI: 2020 GDP DOWN "SOME POINTS"
The government expects a contraction in GDP for 2020 "of a few percentage points". This was explained by the Minister of Economy, Roberto Gualtieri, in a hearing on the Cura-Italia decree in videoconference with the Budget commissions of the Chamber and Senate. The owner of the MEF spoke of a "severe contraction, but fully manageable and recoverable".
The government, Gualtieri said again, will ask Parliament in the first half of April for authorization to raise the 2020 deficit/GDP target again in order to be able to deal with the economic emergency linked to the coronavirus.
SPREAD AT 190, RECORD DEMAND AT SPANISH AUCTION
The BTPs were positive, closing with a yield of 1,56%. The spread fell to around 190 points.
The month-end auctions will open tomorrow, with the placement of Cts and Btpei. On Friday, the Treasury will offer 7 billion Bots for six months.
Spain has successfully launched a new 7-year bond for 10 billion euros: demand has exceeded 36 billion.
ONLY DIASORIN IN RED, VOLANOLE BLUE CHIP
As many as 39 out of 40 blue chips ended Tuesday's session higher, some by more than 10%. Only Diasorin (-1,4%) recorded a slight drop, but it had performed very well in the previous weeks.
There are many double-digit advances. Exor leads the race (+18%): the results are expected today and possible indications could arrive on the use of the liquidity obtained from the sale of PartnerRe.
LECLERC (PSA) AT THE HEAD OF ALFA ROMEO
Fiat Chrysler +12%. Equita Sim confirmed the buy rating, with a target price falling by 35%, to 10,9 euro. Analysts point out that the merger with PSA is not at risk, despite the recent losses of the title. Confirming that relations with PSA remain excellent, comes the news that Arnaud Leclerc, current Peugeot manager in Great Britain, will lead the Alfa Romeo brand.
MEDIOBANCA AND ENI DOUBLE-DIGIT RISE
Moncler (+13,5%) goes back above 30 euros: it was worth more than 40 before the crisis broke out.
Stm and Leonardo rose by around 14,4%.
Eni +11%: Banca Imi confirmed the buy rating with the target price dropping from 14 to 12 euros. Saipem +6,19% to 2,33 euros: Kepler Cheuvreux reiterated the buy recommendation, cutting the target price from 6,5 to 3,5 euros, a level that remains well above current prices.
Mediobanca (+13,91%), Ubi (+10,09%) and Ubi (+9,99%) fly among the banks.
Nexi +14%. Kepler Cheuvreux has raised the recommendation from hold to buy, with a target price that has dropped from 14 to 13 euros, a level however still decidedly higher than the quotation (12,06 euros).
Among the mid caps, stellar performances for Illimity (+14,54%), Salini Impregilo (+13,79%) and Banca Mediolanum (+12,09%).
ELLIOTT MAKES CASH IN TIM
Tim (+3%) briefly crossed the 40 cent mark. Eliott sells and raises cash, without losing out. Paul Singer's activist fund, taking advantage of the rise in Tim's stock, decided to lighten its position, which has now dropped from 9,72% to below the 7% threshold, to 6,98%.
Unchanged Fincantieri, at 0,55 euro. Banca Akros reduced the rating of the security to neutral from accumulated, with the target price reduced to 0,74 euro from 1,2 euro, pending the accounts on the agenda for today.
In Aim Vetrya shines (+10%). the company has proposed to the Italian government a solution for tracking the spread of Covid-19 which will use smartphones and a mapping system based on artificial intelligence, to obtain correlations between individuals and provide the competent structures with data on the trend of Covid -19.
