After Asia, the first crisis of the Trump era hit the price lists of the Old Continent. In Milan, the Ftse Mib index slipped by 0,80%, just above 20 thousand points. The other stock exchanges are in red. The worst is Frankfurt (-0,85%) despite the surprise improvement in the Ifo index on business confidence which reached its highest level since July 2011, above the consensus of economists.
Investors are questioning the ability of the new presidency to carry forward the promised fiscal stimulus package, one of the factors that in the last period has mainly supported expectations of a strengthening of US inflation and consequently those of Fed rates. Concerns about the capacity of leadership of the White House cast a shadow on the possibility that the US economy will accelerate as promised by Trump. By extension:
- The dollar weakened against the euro, which rose to 1,086, from 1,079 on Friday.
– Rates fall in Europe: the yield of the Bund ten-year declines to 0,36%, from 0,40% on Friday. Btp at 2,18% from 2,21% on Friday, the spread is indicated at 181 basis points (+1bp).
– Fears about growth cause prices to fall raw materialstarting with oil. Brent loses 0,5%, to 50,5 dollars a barrel. Wti at 47,5 dollars (-0,8%). Eni drops by 0,2%, Saipem -1% Tenaris -1,6%.
Ferrari runs, marking itself as the only stock on the rise in the European automotive basket. After winning the Formula 1 Grand Prix in Australia, the stock hit a new high at €68,5. Now one way each way around 67,4 euros: since the beginning of the year, the Red has gained more than 20% (+50% in the last six months).
On the European stock exchanges, the stocks that fell the most are in the Banks sector (Stoxx -1,3%) and Insurance (-1,2%). In Milan Unicredit loses 2,2%, Understanding -0,7%. The group is studying a plan to reduce non-performing loans (Npl) by 15 billion euros by 2019. Expected by the ECB by the end of the month, the dossier will end up on the table of the board chaired by Gian Maria Gros-Pietro on Tuesday. Bpm bank -1,6%. Also substantial losses for B for Bank (-1,6%) And Mediobanca (-2%).
After the presentation of the precautionary recapitalization request by Popolare di Vicenza and Veneto Banca, the ECB "has already shared the information with the European Commission", said the chairman of the Supervisory Board Daniele Nouy answering a question about the two banks Italian companies during a press conference in Frankfurt for the presentation of the annual report of the ECB Supervision.
Among the insurance companies, Generali fell by 0,5%, Unipol -1,6%. Industry stocks are also down: Leonardo -1,1% StM -1,1% Fiat Chrysler -1,5% Buzzi -2,3%.
Telecom Italy is tied: Macquarie raised the target price to 1,1 euro from 1,05 euro, Outperform recommendation. Mediaset drops by 1,4%.
Positive Rest (+0,5%), promoted by Citigroup which raised the target price to 10,5 euros from 9,2 euros (Buy recommendation). The American subsidiary Host has been awarded a new ten-year contract for the management of the food&beverage spaces at the New Orleans Louis Armstrong International Airport.
