BETTER THAN EXPECTED US EMPLOYMENT. EXCHANGES TAKE THE ROAD TO THE UPWARD
European stocks down slightly in mid-morning. In Milan, the FtseMib index fell by 0,6% to 15712, Paris fell by 0,18%, London -0,07%, Frankfurt -0,03%.
The awaited report on US employment came out at 14 pm Italian time: 171 jobs were created in October, excluding agriculture, against the 125 expected (+16%). There are 184.000 new jobs in the private sector. But the unemployment rate, as expected, rose to 7,9% from the previous 7,8%.. For 25 months, the balance between new jobs and exits has been positive, but the recovery is too modest to absorb the unemployed for more than 6 months who remain around 12 million.
The data allowed the Stock Exchanges to quickly reverse course after the negative morning. In Milan, the FtseMib index rose by 0,23% (-0,6% at mid-day), Paris rose by 0,63%, London +0,33%, Frankfurt +0,62%.
In the morning, the drop in the manufacturing sector in the Eurozone weighed on the stock markets. In Italy, the PMI for the manufacturing sector fell to 45,5 points from 45,7 (estimates at 45,3), marking the 15th consecutive month in which the index is below 50 points, indicating contraction in activity .
Another critical element: the evolution of the crisis in Greece continues to suggest caution to the markets, especially after yesterday the Athens Court of Auditors raised doubts about the constitutionality of the pension reform requested by the EU and the IMF, a non-binding opinion for Parliament that next week he will have to vote on the provision, but which risks complicating the government's effort to unblock the next tranches of financial aid.
The euro it is down sharply to 1,287 against the dollar, from 1,290 at last night's close. Petroleum down, with WTI trading at 86,5 dollars a barrel (-0,6%), Brent at 107,8 dollars (-0,3%). On the government bond market, the yield of Btp to 10 years it is stable at 4,92%, the spread is little moved at 348. It slips among the banks Bper -2,11%, bounces Ps +1,74%. They retreat both Understanding -1,18% that Unicredit -0,46%.
Among other blue chips, price changes are modest. The strongest downside is by Telecom Italy which drops by 2,88%, influenced by the decline of Deutsche Telekom , which lost 2,7% following the indiscretions of the newspaper Reuters which hypothesizes a drastic cut in the dividend in the next few years (-30%). Also in sharp decline Mediaset – 2,34%. Fiat Industrial loses 1,5% after UBS downgrade a neutral da buy.
Fiat returns to positive ground at 0,64% e Pirelli rises by 0,3%: both benefit from the strong growth of the Brazilian auto market in October (+41%). Car sales in France collapsed -7,8%, but Germans, Japanese and Koreans rose by double digits. Fiat is the one that loses the most. They are both down Enel -0,4%, either Enel Green Power -1,3%.
Among the most active Italian companies in the USA, Rest up 1,5% thanks to Credit Suisse which raised its rating a performer da neutral.
Slightly positive Luxottica +0,3% which announced this morning the acquisition of the French eyewear manufacturer Alain Mikli. Tod’s earn 0,6%. Impregile it salt by 0,3%. Among the mid caps, they go up TerniEnergia + 1,9% fair Milano +1,9% and Telecom Italy Media +1,8%. The fall continues today Mayor Tecnimont , suspended due to excessive reduction.
