Once the fear of Grexit has passed, calm seems to reign over the price lists. Attention, warns Alessandro Fugnoli from the columns of “Il rosso e il nero”: “Under the surface, the market is nervous. The Fed will raise rates in September and again in December or January. It won't be a tragedy, for heaven's sake, but we'll have to get used to it". It is in this key that the reception to the contrasting data of the US quarterly should be read. The Asian stock markets are weak in the wake of the trend of the US markets: in Tokyo the Nikkei index drops by 0,3%, the same trend in Hong Kong. The Chinese indices are on positive ground. But conflicting signals are coming from the economy. The Chinese economy is still disappointing: the PMI index remains below 50 for the fifth consecutive month. On the contrary, Japan's recovery is gaining strength: PMI better than expected, industrial orders growing strongly.
NIKKEI CONQUERS THE FINANCIAL TIMES
To celebrate the acceleration of Abenomics comes the purchase by Nikkei of control of the Financial Times and 50% of the Economist acquired by Pearson for 1,3 billion dollars. By chance, the not richest but undoubtedly most prestigious acquisition of Japan almost coincided with the outbreak of the Toshiba scandal, the collapse of the opaque control system of corporate Japan. Tokyo, one might say, has decided to take a crash course in governance.
USA, SUBSID REQUESTS AT THE MINIMUM FOR 42 YEARS
Macro data growing, but Corporate America loses some shots. The Dow Jones fell 0,48%, the S&P 500 0,41%, the Nasdaq 0,14%.
The US leading indicator, a barometer of US economic activity over the next 6 months, rose more-than-expected in June, buoyed by a strengthening housing market, suggesting that growth will continue to gain momentum over the remainder of the year.
Labor market data released before the start of talks is staggering, new jobless claims plunged to 255.000 last week, a level not seen in 42 years, consensus expected 278.000. Weak Wall Street: the time for the rate hike is approaching: Dow Jones and S&P 500 lost 0,7%. the Nasdaq 0,5%.
GOOD GM AND STARBUCK. AMAZON IS WORTH MORE THAN WAL MART
However, futures on the Nasdaq 100 signal a sharp reversal upwards that will be felt in today's session. The change in direction is explained by the results of some quarterly reports. Starbuck rises +2,3% in the aftermarket after the quarterly: the coffeehouse giant has not suffered from the strength of the dollar. Amazon goes into orbit +18% after sharply rising profits that surprised analysts. Jeff Bezos' company is worth more than Wal Mart today. Excellent reception yesterday to the results of GM + 5% after announcing a net profit more than doubled in the second quarterThe quarterly results of 3M -3,27% and Caterpillar -3,38% closed below expectations, as well as the revenues of American Express -3,43%).
On a positive note, GM rose 5% after reporting more than doubled net income in the second quarter.
The dollar retreats slightly after yesterday's gains: the euro/dollar exchange rate is at 1,097, from 1,092 at the previous close.
COMMODITIES, NEVER THIS LOW SINCE 2002. OIL -20% IN ONE MONTH
The weakness of commodities continues: the Bloomberg Commodity Index is at a 13-year low. The phenomenon fuels doubts about the consistency of global demand and the extent of the Chinese slowdown. Oil continues its downward movement: Brent fell to 55,27 dollars a barrel and Wti to 48,5. In the last month, quotations have fallen by 20%.
Little movement in Milan Eni +0,1%, Saipem fell by 0,6%.
DISHES THE EUROPEAN PRICE LISTS, ATHENS WILL REOPEN NEXT WEEK
A day of little emotion for the European stock exchanges which ended the session substantially unchanged. Indices remained flat in Paris and Frankfurt, with Milan's FtseMib closing 0,2% lower. Next week, according to a Greek government official, it will be decided when the Athens stock exchange will reopen after four weeks of closure. Greek banks reopened on Monday the 20th and their recapitalization needs will only be known after the stress tests starting in August. In the meantime, again according to the source, talks with the institutions on the third bail-out program will begin tomorrow, which, according to forecasts, should materialize in an agreement by 20 August. The primary surplus target for 2015 will be below 1 percent of GDP, the official said.
The Btp rose slightly, with a yield of 1,89% (from 1,93% yesterday evening), spread at 115.
FERRARI NV OUT OF THE PITCHES: IPO FILE PRESENT ON WALL STREET
FC +0,35%. Ferrari filed for IPO on Wall Street. The object of the Prancing Horse NV offer will not exceed 10% of the ordinary shares. Ferrari will be listed on the New York Stock Exchange. And the quotation on Piazza Affari is also not excludedAmong the industrialists Buzzi slows down +0,2% in the afternoon after the strong rise in the morning, triggered by the promotion of Equita sim to Buy from Hold.Finmeccanica +0,9%.
Money on Pirelli +0,07%.
STM TO THE RESCUE, THE COUNTS ARE COMING BACK
The gloomy omens of the eve proved to be unfounded. StM achieved a rise of 7,6% canceling the fall of the previous day (-6,6%) on the wave of the decline in the sector after Apple's accounts. Yesterday, Europe's leading semiconductor company announced second-quarter results in line with expectations: revenues of $1,76 billion, just below expectations. The Gross Margin profitability indicator stood at 33,8% of revenues, in line with consensus estimates. Net income is $35 million, three million dollars less than analysts' expectations. The company expects sequential improvement in revenue and margin for the third quarter.
CITIGROUP PUNISHES ENEL, DOWN TELECOM THAT CUTS
The negative surprise comes from Enel -1,5%, which ended up in the sights of Citigroup which lowered the recommendation to Sell from Hold and cut the target price to 4,0 euros. Since the beginning of the year, Enel has gained 18%, underperforming the main index, the FtseMib, which boasts a performance of 25%. The company will report its second quarter results on July 29.
Bad day also for Telecom Italia – 2%: the company announced 1.700 redundancies to the unions.
FLAT BANKS. IMPROVE AZIMUTH
In the insurance and asset management sector, Generali -0,4% and Mediolanum -0,6% are weak. Azimut's positive reaction +1,8% after the release of good quarterly results.
The banks moved little: MontePaschi +0,8%, Intesa and Unicredit unchanged. Ubi +0,4%.
HIGHLIGHTS STABLE GOODS AND L'ESPRESSO
Leap of Beni Stabili Siiq +4,4% to 0,76 euro. The company repurchased 99,51% of the existing bonds in a reverse bookbuilding operation.
Among the mid caps, Espresso rose +2,1%, after the good results. Mediobanca Securities raised the target price on the stock to 1,68 from 1,66 euro, confirming the outperform recommendation. Banzai +4,5%.
