Not only Greece, the main suffering point of global finance. But also the dramatic collapse of the Chinese Stock Exchanges and the weakness of raw materials, with oil in the lead. The ingredients of a hot season multiply. This morning in Tokyo the Nikkei index fell sharply (-1,5%). Sidney is also in the red (-1,3%). The situation in Hong Kong is very serious (-5,1%), under the pressure of the catastrophe of Chinese price lists. The Stock Exchange title loses more than 9%. Prada does not suffer any repercussions, which this morning limits its losses to 0,66%.
CHINA, 2.800 BILLION IN CAPITALIZATION FROZEN
In the meantime, the rain of sales that hit Shanghai and Shenzhen shows no signs of abating, which from the outset have suffered a drop in the index of around 8%. But the most dramatic data concerns the blackout of prices and trades on a growing slice of the market: 1.476 titles did not even take part in the session. Thus a capitalization of 2.800 billion dollars is "frozen", almost seven times the Stock Exchange. Thus, around 50% of the market is frozen.
For now, Beijing's efforts are in vain which, through the CSF public financial institution, is buying up bonds with both hands. Giants such as Petrochina are also faltering, down 10% during the day. A catastrophe that can provide buying opportunities: Goldman Sachs forecast this morning that Chinese stocks could grow by 25% in the next twelve months.
WELL STREET, MILAN -2,97% BELOW 21 THOUSAND POINTS
In the midst of the turbulence, Wall Street is making history in itself: after a sluggish start, partly linked to the trend in the trade balance, the indices have recovered in the wake of the IMF report which invites the US not to raise rates in 2015. In the end the Dow Jones recovered its initial red and closed up 0,54%, the S&P 500 around 0,5% and the Nasdaq up 0,11%.
After a timid attempt in the morning, the rebound of the European stock exchanges failed, now hostage to the tragic situation, bordering on the absurd, of the Greek question. Milan continues to be the Stock Exchange that suffers the most: the FtseMib index closed the session down by 2,97% at 20.958 points. The Paris and Frankfurt stock exchanges lost 2,3% and 2% respectively.
On the other hand, the sovereign debt market is solid as a rock, under the vigilant supervision of the ECB. The ten-year BTP closed the day with a yield of 2,28% against 2,38% on the eve. The spread rose to 164 bp due to the fall of the Bund to 0,64% from 0,76%. The euro weakened slightly to 1,095 against the dollar, from 1,105 yesterday.
GREECE, TODAY TSIPRAS BEATS CASH. SUNDAY STARTS TIME X
The day brought no news on the Greek front. Alexis Tsipras, for the umpteenth time, has disappointed the expectations of the markets postponing the presentation of a new proposal to European creditors. The appointment is now with the speech that the Greek prime minister will present to the European Parliament meeting in Strasbourg. But the new Greek plan will essentially be a request for funding from the ESM, the European State-saving Fund, for 7 billion. Angela Merkel replied: “We need long-term commitments first. Then we can talk about solutions shortly. Behind commitments”.
Never as in this case is the saying "no news, bad news" valid. The next hour X has been set for Sunday when the heads of government will meet once again: either there will be an agreement or there will be default. Meanwhile, uncertainty is eroding confidence in financial markets. And in Athens the banks, like the Stock Exchange, will remain closed today as well. And tomorrow. The only reference with the stock market is that of the National Bank of Greece, also listed on Wall Street: the stock lost 6% yesterday, it closed 12% down on Monday.
OIL DOWN STILL. HIT ON SAIPEM
The slowdown in China is reflected in the prices of raw materials: iron futures fall (-8%), copper suffers (-4,8%). In the meantime, oil's descent resumes, to its lowest since last April: Wti 52 dollars, Brent at 56,6. The crude oil front is also conditioned by the evolution of the geopolitical situation.
The Iranian nuclear deal is approaching and could be signed on Friday. In that case, Tehran's oil embargo would be lifted. By extension, the great enemy, Saudi Arabia, is moving towards new alliances: Riyadh has granted a loan of 10 billion dollars to Russia, traditionally close to Iran. On Wall Street, oil stocks fell 2,5% as crude oil fell sharply again after falling overnight.
In Milan, Eni fell by 3,6%, Tenaris -3,3%. Saipem fell by 6,7%, influenced by the collapse of the French competitor Technip (-8,2%), which announced a drastic restructuring plan with 6.000 layoffs.
THE CAR BAD, BUT FCA KEEPS IT. PIRELLI -0,07% BEST BLUE CHIP
On European price lists, sales were concentrated in the Automotive sector (Stoxx in the sector -2,9%). The current also invested Fiat Chrysler (-2%), which until mid-afternoon had benefited from the interview with the Wall Street Journal by chairman John Elkann, who relaunched the hypothesis of a merger with General Motors.
Meanwhile, Exor, down by one percentage point, improved its offer for the reinsurance company Partner Re.
Little move Pirelli (-0,07%), supported by the tender offer price. La Bicocca is however the best stock of the FTSE MIb. The other industrial stocks were negative: Finmeccanica -2,6%, Prysmian -2,8%. StM, the only positive stock in the Milanese FtseMib index on Monday, fell by 5,4%. Better Infineon than the Italian-French company, wrote the analysts of Crédit Suisse.
BANKS, THE ORDER OF MPS CONTINUES
Another day of passion for credit, including not a few suspensions for excessive reductions. The Italian sector index dropped 3,7%, about double the European one (-1,85%). Monte Paschi (-7,48% to new historic lows) was still the most targeted by sales, closing down by 7,48%. The volumes are intense, more than double the last thirty sessions. Unicredit -3,8%, Intesa -2,8%, Banco Popolare -4,1% and Ubi -3% also lost. Pop.Milan -6,3%.
BMW RELYS ON M.BRAMBILLA (+7,61%)
Worth noting in the Aim is the exploit of Modelleria Brambilla of Modena +7,61%, after the signing of a contract with BMW (worth half a million euros) for the production of molds for a 4-cylinder head with delivery starting from October 2015 until the following year. Among the big caps Enel slips down by 1,9%. The other utilities moved little: Terna -1%, Snam -1,5%. Telecom Italia loses 1,8%. Lastly, luxury stocks were down, starting with Ferragamo (-2,9%) and Tod's (-2,6%).
