THE GERMAN CONFIDENCE TEST SCARES THE EXCHANGES. TRAVOLTA LUXOTTICA, FCA DEFENDS ITSELF ON WALL STREET
The markets await the outcome of the Zew, the German confidence index, with bated breath. In the meantime, Asian stock markets are retreating after the sharp downward correction on Wall Street. In Tokyo, the Nikkei index falls by 1,5%. Even the Chinese markets were down, albeit more contained.
Finale with the thrill last night on Wall Street. As had already happened on Friday, a shower of sales was concentrated in the last hour of trading: the Dow Jones index lost 1,35%, the S&P 500 around 1,4% and the Nasdaq 1,46 %. Sixth consecutive downward closure for the Milan Stock Exchange, with the FtseMib index down by 0,3%.
The spread between the BTP and the Bund closed at 144 basis points and the 2,34-year domestic rate settled at 6,75%. The Italian Treasury has successfully inaugurated the intense week on the primary market by placing all the XNUMX billion euro of BTPs scheduled, recording an upward yield on three-year bonds and updating the new historical low on thirty-year bonds .
The other European Stock Exchanges are doing better. Paris ending the session tied, Frankfurt +0,2% and London +0,3%. More signs of recession. The descent of oil continues with Brent down by 2% to 88,3 dollars a barrel and Wti at 84,5 dollars (-1,4%). The dollar weakened to 1,268 against the euro, from 1,262 at Friday night's close. Gold strengthens to 1.229 dollars an ounce (+0,5%).
SEEING THE DOWN ZEW INDEX, RATES INCREASING ONLY IN 2016
Eyes wide open today on the October Zew, the German confidence index which has so far recorded a steady decline since January. Just a fix or something more? The ranks of pessimists are strengthening, anxiously waiting for the signal on German confidence, a crucial figure after the negative data on the leading economy of the eurozone.
The forecasts are not encouraging: in the Bloomberg panel the optimists (so to speak) foresee the drop to 15 from the previous 24,5 (already decreasing) but there are those who bet that it will not go beyond 6. Or even less. In the afternoon, the US quarterly campaign will come alive with data from Wells Fargo and Jp Morgan.
The slowdown in the international economy is forcing the Fed to review its plans. The expected date for the rate hike is postponed to early 2016 according to the chairman of the Chicago Fed, Charles Evans. “I'm a little concerned that raising rates prematurely might not work,” he added. Evans' sortie is not surprising, noted Dove. But Stanley Fisher, Janet Yellen's deputy, also preached caution over the weekend, until now considered much more inclined to move the interest rate lever.
LUXOTTICA, THE OLD MUST REVIEW THE PLANS
Another twist at home Luxottica. The revolt of the independent directors forced Leonardo Del Vecchio to review the plans after the resignation of CEO Enrioco Cavatorta.
Del Vecchio himself will accumulate all the powers pending the new governance. Massimo Vian is confirmed as chief operating officer but does not assume the position of CEO. No assignment, at least for now, for Francesco Milleri, the trusted professional of Del Vecchio's wife. It is the result of the mediation in the council of Claudio Costamagna after the outcry of the independents, including Roger Abravanel and Anna Puccio.
Yesterday, meanwhile, the title had a field day. The shares burned 1,82 billion in a single session, losing 10% before closing the session down 9,2%. 1,8 billion worth of burnt in one sitting.
FCA DEBUT WITHOUT DAMAGE AT WALL STREET IN RED
The shares of the auto sector are currently undervalued “unjustifiably: they are valued at 2,5 times the EBITDA, the bottom of the barrel is scraping”. Thus Sergio Marchionne on Wall Street after having rang, together with President John Elkann, the bell that marked the end of trading on the day of Fiat Chrysler's debut on the US stock exchanges.
It was a swing debut. The title fca (+1,22 to 7,025 euros in Milan) in fact closed on the levels of the beginning of the day at 9 dollars after having marked strong increases at the start (up to 9,40 dollars, +8,1%) to then slip into negative territory and recover in the final up to 8,92 dollars -0,09%.
John Elkann, appointed by the FCA board president, defined the debut on Wall Street as "a historic moment". Sergio Marchionne was confirmed as managing director: "This - he said - is the culmination of the work we have done in the last five and a half years". The shareholder register shows that the CEO owns 0,52% of the share capital.
MEDIOLANUM RISALE IN VIEW OF FININVEST BOD. BANKS OK
Financial stocks are holding up well. Mediolanum it closed up 3,3%. Shares of the asset management company had lost 3% on Friday. According to rumors, Fininvest should convene a board of directors shortly to decide how to proceed with the sale of around 20% of the capital. It seems likely that the creation of a blind trust will be opted for, which will have 30 months to dispose of the stake.
Good day for banks: Unicredit + 0,3% Understanding + 0,9% MontePaschi + 1,1%. BancaPop.Milan + 0,9% Banco Popolare + 1,2%.
OIL AND CHIP: TWO BLACK HOLES
The decline in crude oil and the American warnings on semiconductors also weighed on Piazza Affari. Among oil stocks, Eni rose by 0,4%, Saipem it lost 2% after the drastic downgrading of Ubs which lowered the rating to Sell from Neutral. Tenaris rose by 0,7%.
stm, after -5,5 on Friday, lost another about 5,4% in a bear market in the chip sector after Microchip Technology's earnings alert sounded on Wall Street last week and which analysts say could lead to the 'arrival of more bad news from the sector.
NEW ORDERS FOR IMPREGILO, AUTOGRILL BOUNCES
Bucking Salini Impregilo +1,37% to 2,67 euros), thanks to the new order in Poland worth 239 million euros. The titles linked to the travels of the Benetton stable date back: wdf +0,44%, after the positive data on passenger traffic in September released by the Association of Spanish airports (+5,2% per annum to 20 million). On 8 October, the Fmr (Fielity) fund rose from 5,177% to 10% of the group's capital, becoming its second largest shareholder. Rally even of Rest up 2,6%.
