Don't panic, but the coronavirus epidemic is starting to bite: the euphoria for peace on tariffs is now behind us and operators are once again dealing with uncertainty, also because Donald Trump, departing from Davos, reiterated that "making a deal with Europe will be more difficult than with China" and announced a new barrage of tax cuts ahead of the elections. In short, a season of clashes about everything is looming, starting with car tariffs, which will be the backdrop to the ECB meeting today. Hence a more cautious attitude of operators starting from oil prices: energy futures fell to a 7-week low in the wake of the alarm over production and stock surpluses launched by the IEA, the international energy agency .
SHANGHAI LEAVES 3%. BRAKE WALL STREET
The dam of the Chinese Stock Exchanges gives way. The CSI 300 index loses 3,2%, the largest daily decline since last May, Hong Kong -3%, Nikkei and Kospi of Seoul -1%, Mumbai bucking the trend, +0,3%.
China has decided to curb travel to and from Wuhan, a city of 11 million inhabitants, as a last-ditch effort to stop the spread of the coronavirus which has killed at least 17 people and infected hundreds mostly in China, but with outbreaks also in the United States, Thailand, Taiwan, Japan and Korea. Chinese New Year celebrations in the city have also been suspended.
Little move yesterday Wall Street: Dow Jones -0,03%, S&P 500 +0,03%, Nasdaq +0,14%. The good reception at the IBM and chip industry quarterly offset the jitters about news from Asia.
TESLA RISES ABOVE THE 100 BILLION WALL
Tesla (+4,1%) once again a superstar. Elon Musk's company has exceeded the ceiling of one hundred billion dollars of currencies.
The race towards less risky assets such as yen and bonds resumes. The yield on the 1,75-year US Treasury fell to 1,80% from 0,26% yesterday evening, that of the 1,35-year German Bund fell to -5%. The ten-year BTP restarts from XNUMX% after the farewell of Luigi di Maio at the helm of the MXNUMXs.
Gold changed hands at yesterday's levels, at 1.557 dollars, as did the US dollar against the euro, 1,108.
TOWARDS AN OPENING IN RED, SPREAD OVER 170 THEN BRAKE
Futures on European stock exchanges anticipate a 0,3% downturn.
European price lists contrasted yesterday on the eve of the ECB meeting. The markets, which started with a positive attitude, have thus gradually lost momentum, preferring to shift attention to the directorate which will be held this afternoon in Frankfurt. Christine Lagarde should not make changes to the current rate level, but officially launch the new "strategic review" announced at the December meeting. At the heart of the review are the definition of the concept of price stability and the assessment of which tools should be used to pursue it.
The Italian stock exchange also had to deal with the political crisis opened by the resignation of Luigi di Maio as political leader of the Five Star movement: Piazza Affari closed down by 0,58%, at 23.706 points.
All things considered, the consequences on debt securities were contained. The yield on the 10-year BTP returned to 1,35% in the evening after jumping 8 basis points to 1,45%, the highest in the last five months. The spread also narrowed again to 162 basis points from 170 at the opening, the highest level since the beginning of 2020. A climate of anticipation prevails in anticipation of Sunday's vote in Emilia-Romagna.
In the morning, the Dax index of the Frankfurt stock exchange successfully concluded a prolonged chase by updating, after 23 months, the historical record at 13.640 points (+0,3%). But during the session the German market also lost momentum, closing down by 0,29%.
Rebound also failed in London (-0,52%), Paris (-0,58%) and Madrid (-0,4%).
STM: 2,36 BILLION REVENUES EXPECTED FOR THE QUARTER
Stm communicated the results of the fourth quarter this morning. Net profit -6,2% to 392 million dollars on revenues of 2,75 billion, +4%. Chairman Jean Marc Chéry said, “We expect net revenues of $2,36 billion, corresponding to a year-over-year growth of 13,7% and a decline of 14,3% from the previous quarter, and a gross of 38,0%". SocGen has strengthened the Buy by raising the target price to 29,30 euros on the eve of the quarterly
SURPRISE STOP FOR SAIPEM, BANKS DOWN
Banks and oil companies were yesterday the weak link in Piazza Affari.
Saipem drops by 3,6%. In addition to the slowdown in oil prices, the downgrade of Bank of America from Neutral to Underperform, target 3,50 euros, weighed. Eni -1,14%, Tenaris -0,3%.
The winds of political crisis favored sales in the credit sector. Bank sales. Unicredit loses 3,5%, Intesa -1,4%. Banco Bpm -3,4%. The Board will propose the former president of CDP and Montepaschi Massimo Tononi as the new president of the institute. The board of directors of Banca Popolare di Sondrio (-1%) announced that it had not accepted the request of shareholder Amber Capital for admission to the shareholding structure, because it exceeded the 1% limit on share ownership.
Azimut (+2,5%) and Finecobank (+1,5%) advance.
STILL REDUCTIONS FOR TIM
New decrease for Tim (-1,42%). Open Fiber did not accept the offer to co-invest in FTTH fiber (€465 million plan to cover 1,3 million property units in 39 cities in areas A and B in the period 2020-23) in light of the 'high number of cities overlapping with those where Open Fiber has already started work: 31 out of 39. Kepler raised the target price from 0,65 to 0,75 euros, Buy judgment confirmed.
Meanwhile, Iliad has challenged the provisions of Agcom and MiSe concerning the authorization process of a joint investment between Fastweb and Wind3 for the construction of a shared 5G network before the Lazio Regional Administrative Court.
FERRARI NUMBER ONE BRAND IN THE WORLD
FCA (+0,5%) does not suffer the effect of Trump's words on car tariffs. Ferrari (+1%) was crowned in Davos as the number one brand in the world. Banca Akros raised its target price to 190 euro, confirming the buy opinion.
Atlantia is also celebrating (+1,8%): the shadow of Luigi Di Maio, the fiercest enemy, is leaving.
In luxury Moncler (+2%), reacts to the repercussions of the epidemic in China. Ferragamo -1%, instead suffers the ninth consecutive decline. Safilo -3%.
RECORD FOR AMPLIFON, IERVOLINO RECRUITS DARIO ARGENTO
The historic record of Amplifon (+4%) should be noted. In 2019, the stock had achieved an increase of 82%.
Fincantieri loses ground (-2,2%): the EU investigation into the acquisition of Chantiers de l'Atlantique could end with a verdict of incompatibility of the operation with the competition rules of the European Union.
Iervolino rises in Aim (+5,5%): the company has launched a new project with director Dario Argento for the production of a TV series.
