On the one hand, the new, perhaps even more violent oil landslide, heralding new financial tensions. On the other hand, the thrust of the central banks, determined to support the markets at any cost. In the middle, to limit ourselves to the United States, the accounts for the first, tormented quarter of 153 corporations. In summary, this is the situation of the markets at the center of events that it is not an exaggeration to define as historic.
Contrasted Asian stock markets: the Asia Pacific index is down by 0,3%, Shanghai, already down by one percentage point, recovers at the end. In red, the Korean Kospi (-0,22%), while the mystery surrounding Kim's fate deepens. In case of disappearance, the keys to the Pyongyang atomic bomb should pass into the hands of her sister Yo-Jong.
BRENT BELOW 20 DOLLARS, THE LARGEST ETF SHAKES
A note of uncertainty on the Stock Exchanges is introduced by the prospect of a new, formidable wave of declines for oil, which is falling heavily despite the approaching cut in production by OPEC +. But, as already happened last month, US crude oil deposits are bursting, because in the absence of demand, no one withdraws the goods.
As a result, Texan oil, down 25% yesterday, loses another 13% this morning, to $10,64 a barrel. North Sea Brent also plummeted, dropping this morning to 18,85 dollars.
The most important oil ETF on the planet, the United States Oil Fund, a 3,6 billion dollar colossus that is trying in every way to shift its position on futures with the most distant maturities and gets rid of futures at any price, falters soon.
THE FED ALSO PUSHES MINI BONDS
However, the difficulties of oil do not seem able to curb the thrust guaranteed by the central banks comforted by the desire to restart that runs through the economies. Yesterday evening the Dow Jones (+1,51%), S&P 500 (+1,47%) and Nasdaq (+1,11%) closed in positive territory on the eve of the accounts of the unicorns of the US economy.
APPLE POSTPONES NEW IPHONES, CITIGROUP FLIES
Apple has announced that the launch of new iPhones this year will be delayed by a few months. Tesla takes off (+10,1%), which has announced the resumption of activity in American plants for next week. But California authorities said no.
Amazon is slowing down (-1,5%), but the banks have taken care of supporting the indices: Citigroup +8% and Bank of America +6%.
For the fourth consecutive session, the fear index, the Vix, closed down at 33,4 (-7,3%). The Federal Reserve, which will kick off its meeting in a few hours, has expanded the parameters on access to funds reserved for cities and counties, allowing about 200 local municipal authorities, previously excluded, to be able to receive aid. The limit for cities has been raised to 250 thousand inhabitants, from one million.
Gold retreats from last week's period highs and this morning is back below 1.700 dollars an ounce, down 0,9%.
Quarterly reports and awaiting the decisions of the ECB which will meet on Thursday will be the central themes of the meeting of the EU markets, also awaiting the data on the GDP of the USA (tomorrow) and the Eurozone (Thursday).
THE EU RELEASES THE RULES FOR BANKS
The rumors of Reuters yesterday contributed to favoring the sprint start of European lists: credit institutions will be able to have a reduction in regulatory capital in order to help companies face the crisis caused by the coronavirus pandemic and avoid a credit crunch . The European commissioner for financial services, Valdis Dombrovskis, should propose this week a package of measures that leads the EU to "follow in some form the example" of the Federal Reserve to allow a relaxation of the calculation of the leverage ratio by the banks.
BUSINESS CENTER RUNS, FRANKFURT FLY
The Stoxx index of European banks thus gains more than 3%. Piazza Affari is running: + 3,09% at 17380 points. In the foreground Frankfurt, which shows a progress of 3,13%, in the wake of several blue chips.
LUFTHANSA AND DEUTSCHE BANK OVER 10%
Lufthansa took off (+10,45%), after the German transport minister said he was in favor of protecting the airline.
Deutsche Bank (+12,68%) reported first-quarter earnings above expectations but warned it could miss capital requirements targets this year as defaults rise and credit extensions meet to the Covid-19 emergency. Commerzbank +6,8%.
PROFITS BOOM FOR UBS, THANKS TO THE “RICH”
Paris follows (+2,55%). Madrid (+1,78%), London (+1,64%) and Zurich (+1,38%) are also on positive ground.
UBS's profits soar: +40%, to 1,5 billion dollars thanks to the increase in deposit and trading activity by wealth management clients.
THE FT: THE ECB WILL BRING THE BAZOOKA TO 1.500 BILLION
The ECB announced that last week, as part of the support plan for the areas affected by the pandemic (750 billion euro PEEP programme) it bought bonds for 26 billion euro, since the start of the intervention, in early April, the total is 97 billion euros. To increase the impact force, the ECB is preparing to bring the PEEP plan to around 1.500 billion euros, writes the Financial Times. The newspaper reports that the object of purchases could also be fallen angels, ie the securities of issuers that have only recently fallen below the investment grade threshold.
THE SPREAD CLOSES TO 220, TODAY THE BOT AUCTION
End of session with a positive sign on the Italian secondary, which also benefits from the brilliant performance of Piazza Affari The German paper, a traditional safe haven asset in moments of greater nervousness, is lagging behind.
The spread between the ten-year Btp and the Bund closed at 220 basis points from 236 on Friday evening. The 1,75-year BTP trades at 8% (-XNUMX basis points).
In auction today 10,5 billion in total between six-month and flexible 75-day BOTs. On the secondary market, the 30 October 2020 Bond is indicated at a rate of 0,275% from 0,055% at the end of March. If confirmed at auction, it would be the highest yield for the six-month Bot since August 2018.
The week of communications arriving from central banks and from a large portion of the companies in the S&P500 index began with a large rise involving the European stock exchanges, including Piazza Affari.
IN MILAN 38 BLUE CHIPS (OUT OF 40) WITH THE PLUS SIGN
Leading the movement in Europe are companies linked to travel and travel, both for tourism and for business: Stoxx Travel&Leisure index +4%. Large increase also for the automotive segment.
Thirty-eight blue chips finished higher in Milan. Only Italgas and Tenaris closed slightly lower.
GREEN LIGHT TO OPS INTESA/UBI, AZIMUTH IN THE RALLY
We have already mentioned the banks' rally. He led the Mediobanca race (+4,84%), ahead of Unicredit (+4,2%). The assembly of Entente (+3,8%) approved the public exchange offer with Ubi (+2,8%).
But the real protagonists of the day were the stocks of the managed sector. Anima Holding soars by 12,4% on the expectation of an interest from Amundi which was denied during the session. The decline in the spread gave wings to Azimut (+9,47%) and Banca Generali (+7,76%). Finecobank and Mediolanum also made progress, both up by an abundant 3%.
RESURRECTION TESTS FOR FCA. BUT THE MARKET IS STILL
Among the industrialists, Fiat Chrysler shines (+4,73%) ahead of Ferrari (+2,05%). The factory in the Duchy has resumed operations. In Germany, the Volkswagen headquarters in Wolfsburg has resumed operations. The Italian car market is at a standstill, with 2.073 units registered in April up to last Friday. The estimate by Unrae, the association that brings together foreign manufacturers operating in Italy, for the entire month of April is of a contraction in registrations of around 97%-98%: “whether 3 or 4 thousand, the comparison with the 175 units in the same month of last year is astounding”, says the president Michele Crisci.
ON THE STM SHIELD, MORGAN STANLEY BRAKES LEONARDO
In evidence Stm (+5,52%) and Prysmian (+4,24%). It contains Leonardo's gains (+0,29%), on which Morgan Stanley has reduced the recommendation from overweight to equalweight, with the target price falling from 13,5 to 6,75 euros.
Juventus up sharply (+6,08%). Flash of Moncler (+4,85%) and Technogym (+7,46%). Sale Fila (+6,34%).
In light Cerved (+5,04%), which has signed a series of binding agreements with a pool of credit institutions relating to the signing of loan agreements which will govern the terms and conditions of credit lines for 695 million euro.
