Brake the Tokyo Stock Exchange (-1,8%) after a positive start, driving the recovery of the Nasdaq in the USA. The Bank of Japan caused the change of course: the Japanese economy, Governor Kuroda said, does not need new stimuli. A cold shower for the market which relied on new liquidity to counter the effects of the VAT increase. Positive Shanghai +0,3%.
The season is off to a good start US quarterly. Alcoa's accounts, released after the Wall Street shutdown, beat analysts' estimates. The title scores a 2,3% increase off the stock market.
Yesterday's session was characterized by the revival of the technology sector. The most bought stock was Amazon which rose by 2,3%, while Yahoo! advances by 3% and LinkedIn by 4,5%. The Nasdaq was up 0,81% at the end of the day. The Dow Jones index remained almost unchanged (+0,06%), the S&P 500 appreciated by 0,4%.
Weak i European lists. Paris and Frankfurt fell by 0,2%, London -0,5%. The FtseMib index closed down 1,4%. After reaching the maximum for the year on April 4th at 22.210 points, yesterday the index dropped to 21.667 points: for the second consecutive day the Milan Stock Exchange is the worst in the Old Continent.
HAPPY, THE AUCTIONS TOMORROW. WAITING FOR BTP ITALIA
On the bond market, the 10-year BTP fell back with the yield rising to 3,21%, from 3,18% the previous day. On Friday, on the wave of euphoria for European Qe, rates had fallen to 3,150%. The spread, which in the session had gone beyond 169 basis points, subsequently narrowed to around 164 basis points, due to a greater weakness of the Bund. Germany is now offering 4 billion 2-year government bonds.
It is in this context that the Treasury is preparing for the mid-month auctions which will culminate in the offer of the BTP Italia on Tuesday 14th. The offer of 7,5 billion 12-month BOTs is scheduled for tomorrow, 14th April 2015, against the 8,87 billion maturing. Yesterday evening it was announced that on Friday the 11th 3-year BTPs (3-3,5 7-year BTPs (2-2,5 billion) and 0,75-year BTPs for an amount from 1,25 to XNUMX billion) will be auctioned.
ITALY, GROWTH MARKS TIME. SPAIN SPEEDS UP
“Inflation and deflation risks are roughly leveled in the euro area, which means we don't see an imminent risk of deflation. However, we are ready to prepare for such a situation." So yesterday Yves Mersch, a member of the ECB directorate, cooled down the expectations of a forthcoming European Qe, as hoped for by the markets. Meanwhile, the forecasts on the Italian economy have helped to curb the euphoria. ll Economics and Finance document lowers the previous government's estimates, lowering the figure for 2014 to 0,8%, from the previous 1,1%.
The Monetary Fund is more pessimistic: the Italian economy, fresh from two years of severe recession, will grow this year by 0,6%, and next year by 1,1%. That's what he expects the World Economic Outlook report from which it emerges that the Bel Paese remains the rear light of Europe, or rather the most exposed to the risk of deflation. According to the IMF, in fact, the recovery in Italy will be weaker also in 2015, when the GDP of the euro area should grow by 1,5%, thanks mainly to the contribution from exports. Looking at the forecasts for this year, in terms of growth rate Italy is preceded not only by Germany and France, but also by Spain, whose GDP according to the IMF will expand by 0,9%, revised upwards compared to 0,6% indicated in January.
BANKS DOWN. MOODY'S CONFIRMS THE INTESA RATING
Sales day for European banks (Eurostoxx Banks -1,8%) and, in particular, for Italian ones.Mount Paschi it is among the worst with a drop of 4,04%, after the rally linked to the sale of shares by the Foundation. Heavy the decline of Mediobanca -3,4% and Bper -3,74%. In red the rest of the price list: the Banco Popolare loses 2,37%, Unicredit -2,09% bpm -1,12%.
Also Understanding (-1,88%) closed in negative territory. Mediobanca has raised its recommendation to Neutral from Underperform, the target price rising to 2,6 euros from 1,2 euros. In the evening, Moody's confirmed its long-term debt rating at Baa2 level with a stable outlook. “The capital – reads the note – is sufficient with respect to profitability and in view of the asset quality review. Core Tier 1 was 12,3% in December, a level higher than many European competitors”. Moody's notes that this calculation "includes 86 basis points from the revaluation of Intesa's stake in the Bank of Italy, which the ECB will probably not recognize in its asset quality review activity".
However, the bank maintains a solid coverage of doubtful loans which, according to Moody's calculations, grew from 53% in 2012 to 60% in 2013. Meanwhile, according to rumors, Tassara is on the way to selling all of its stake in the bank, equal to '1,57%. At current prices it is about 628 million euros.
Asset management is also bad, with it in the lead Azimuth down by 4,75%. Mediolanum -3,5% despite higher-than-expected funding figures from the Bank.
CIR LEAVES ENERGY, GOES UP IN THE MULTIPLEXES
Enel down to -0,63%. despite the signing of the alliance with the Chinese group State Grid Corporation of China in the field of technologies for intelligent electricity distribution grids.
In the meantime, it's good Cir (+2,87%) the electric "defeat". In fact, the rally continued after the letter was sent by the banks to transform the credits into shares of Sorgenia, the energy subsidiary in a liquidity crisis. Sorgenia's board of directors will meet tomorrow afternoon.
Salt too L'Espresso (+3,73%) on the eve of the board meeting of TiMedia (-6,13%, on Monday, however, the share had grown by +12,7%) which will have to approve the integration of multiplexes with the subsidiary of the De Benedetti group .
FERRAGAMO AT THE TOP. GOLDMAN TRUSTS YOOX
Among the few positive signs of the day, Ferragamo stands out with a jump of 4,97%, but it is a rebound after the recent declines: from the highs of November, the Florentine maisom has retreated by 25%.
Yoox the session ended up 0,6% at 23,48 euros after a sharp drop that had pushed the quotation to the new low since October at 22,82 euros. The stock, back from a 30% fall in 21 sessions, was moved by Goldman Sachs which, while cutting the target price to 38,5 euros (from the previous 41,5) confirmed the stock in the list of shares to be purchased ( Conviction Buy list).
FLY ITALMOBILIARE. CHINA MAKES MONDO TV SHINE
Divergent performance for the titles of the Pesenti team. The positive momentum continues Italmobiliare which hits a rise of 5,31%. On the other hand, Italcementi slows down (-3,91%). The extraordinary shareholders' meeting approved the mandatory conversion of savings shares into ordinary shares, according to the proposed conversion ratio of 0,65 ordinary shares for each savings share.
Mondo TV it rose by 7,52% which is added to the rise on the eve of yesterday's announcement of a preliminary agreement with Guangdong Alpha animation for the distribution in Europe, the Middle East and Africa of the animation programs produced by the Chinese group.
In buildings it goes up Salini Impregilo (+0,31%), jointly with the Austrian Strabag, was awarded the main Tulfes-Pfons lot in Austria of the Brenner Base Tunnel, worth 380 million: the Italian group's stake is 49 %
Maire Tecnimont -4,8%. The stock is negatively impacted by Kepler Cheuvreux's decision to cut the Hold from Buy recommendation. The previous target price was set at 2,10 euros.
In decline Prelios, -3,83%. Mediobanca Securities cut the recommendation on the stock to underperform from neutral and the target price to 0,64 euro from 0,65 euro.
