It's time for records. Driven by positive news on the tariff front and the prospect of an imminent rate cut by the Fed, stock prices soared. The S&P 500 index closed at a new high at 3.039, Piazza Affari +24% since the beginning of the year has been at the top since May 2018. Paris rises by 21%, Frankfurt by 22. But the streak of records stretches everywhere, regardless of Donald Trump's political problems, on the eve of the impeachment, the elections in the United Kingdom and the electoral beating of the Conte government.
They advance, albeit in a reduced tone, too Asian lists.
Tokyo's Nikkei was up +0,4% and Singapore's Strait Times +0,7%. Hong Kong's Hang Seng lost 0,5%, after administrator Carrie Lam spoke of the disastrous economic effects of the protests that took place in recent weeks. The Shanghai Stock Exchange fell by 0,5%.
Lo Chinese yuan it strengthens slightly against the dollar, while the US currency appreciates slightly against the Japanese yen.
XI BLESSES THE BLOCKCHAIN. RAIN OF RAISES IN SHANGHAI
The real news concerns cryptocurrencies. After President Xi Jinping announced the government's intention to support the development of cryptocurrency technology in view of Beijing's Bitcoin. Chinese blockchain companies soared on the stock exchange with Shanghai-listed Sinodata and Insigma Technology gaining more than 10%. About sixty companies, including some with weak connections to the blockchain, have been suspended for overshooting.
The declaration of the number one from Beijing coincided with the start of the government plenum, for which investments in cryptocurrencies could be included in the five-year economic development programs. The head of the blockchain area of the People's Bank of China, Li Wei, confirmed the central bank's interest in the digital ledger technology, decisive in managing risk control and loan flow.
ALPHABET BRAKES ON THE MICROSOFT PODIUM
Wall Street went into orbit Virgin Galactic +5,1%. Richard Branson's company that deals with space tourism made its debut on the day of records: the S&P500 closed up 0,6% to 3.039 points, a new all-time record, Dow Jones +0,49% is less than 1% from the record, the Nasdaq +1,01% is only 5 points from the top.
A, which reached an all-time high during the session, published a quarterly report slightly lower than expected when the market was closed, with profit eroded by investments in the development of cloud activities. The stock managed to lose 2,3% after the stock exchange.
Shines Microsoft +2,46% after the Pentagon contract for 10 billion dollars "bleached" from Amazon.
AT&T +4% after the presentation of data for the quarter of the new industrial plan: the telephone company expects to sell assets for 10 billion dollars next year.
WALL STREET STOCKS 79% BEATS PREDICTIONS
- Among the hundreds of companies of the iS&P500 index who reported third-quarter results in recent days, 79% beat analysts' estimates.
- Second consecutive day of decline of Petroleum Brent, at 61,4 dollars a barrel. At Piazza Affari Tenaris +1,4%. Eni +0,5%.
- Euro dollar slightly moved at 1,109. Even if the news on Brexit is always full and generous with news, the movements of the euro-pound exchange rate are reduced, to 0,863.
DRAGONS: MISSION ACCOMPLISHED, BUT NOW WE NEED POLITICS
Farewell sober as it is in his Mario Draghi style at the ECB. In his last speech, in front of the heads of government, Mr Euro underlined that the monetary policy of the euro area has partially lost power and is less incisive, therefore it needs the help of governments to fulfill its mandate
“We are in a situation where low interest rates do not guarantee a level of stimulus as they have in the past, as the return on investment in the economy has decreased,” Draghi said in front of an audience that included Angela Merkel and Emmanuel Macron . "Monetary policy can still achieve the goal, but it can do it faster and with fewer side effects if the economic policy on public finances is in tune," she added.
EUROPE ON THE RUN, LUXURY IN THE LIGHT
The Ftse Mib index +0,51%, at 22.723 points, marked new highs since May 2018, bringing the performance since the beginning of the year to +24%.
The third positive week in a row ended last Friday, a movement in perfect harmony with the rest of Europe and with Wall Street, with the only substantial difference being that the American stock market has already reached all-time highs.
LVMH -0,48% GIVE UP TIFFANY +31%
Paris +0,26%. Little move Lvmh -0,48% on the day Bernard Arnault launched the offensive on Tiffany which shot up by 31% after the announcement of the offer of 120 dollars per share for a company valuation of almost 14,5 billion dollars. On Wall Street, the stock has already risen above the offer to 129,1 dollars. But Arnault, who has just inaugurated his first US factory in Texas, is not the type to give up.
The fever of luxury gave Salvatore Ferragamo wings +4,2%. Weak Moncler -1,8% which retraces after the flight on Friday (+11%) after the accounts. Brunello Cucinelli +3,7%.
ADVANCE THE GERMAN CAR. FOLLOWING SALE PIRELLI
Frankfurt +0,46%. The car did well in the face of less tension on duties. Volkswagen climbs 2,18%.
The auto sector also stands out in Piazza Affari. Pirelli +4% driving Michelin's accounts. Ferraris +1,8%. Fiat Chrysler +0,8%. Cnh +1,12%.
Madrid almost flat +0,03%. Bankia -3% after posting a 23% drop in third-quarter net profit as efforts continue to improve margins in credit under pressure from deeply compressed interest rates.
EU SAYS YES TO POSTPONING BREXIT
London +0,21%. Brussels accepted the request to extend Brexit until 31 January 2020, from the "natural" deadline set for October 31st. It is a "flexible extension", meaning that London will be able to leave even earlier if Parliament ratifies the agreement signed by both parties before the deadline. The ball now passes for the umpteenth time across the Channel for approval. The lightning decision came after a meeting of just 30 minutes of the 27 EU ambassadors in Brussels. This is the third postponement of Brexit.
La GBP (0,861 against the euro) consolidates in the area of the highs of the last five months reached last week at 0,8580. From the negative peak in August, the pound has gained 8% in two months.
Hsbc it slipped 3,14% after it revised down its 2020 profit targets. The lender also announced a costly restructuring to deal with the global economic slowdown.
LIKE THE RISK, HOLD DOWN THE BTP
The return of risk appetite drives investors away from bonds. Even the BTP finished the session in negative territory, with the rest of the euro bonds, but limited its losses after the initial slide linked to the outcome of the vote.
BOT AUCTION UNDERWAY TODAY
At the end of the session, the spread between BTP and Bund rates on the 10-year segment stood at 134 points from 135 (from 133 at the end of Friday's session).
The ten-year rate is 1%, unchanged since inception, from 0,95% at the last closing.
The yield on the 10-year Bund recorded a three-month high yesterday at -0,325%, driven by the sharp rise in the Treasury rate, before closing at -0,33%.
The month-end auctions also start today. It starts with 6,5 billion BOTs over 6 months, while on Wednesday the Treasury will offer up to 5,5 billion BTPs over 5 and 10 years and up to 750 million Ccteu.
Banks positive despite the minus sign in Europe.
DEL VECCHIO SURPASSES BOLLORÈ IN MEDIOBANCA
Le statements by Mediobanca +0,1%, on the possible acquisition of a managed savings operator, did not inflame the shares of the sector. Finecobank +2,4% did well, but Banca Generali +1,20% also strengthened in the afternoon, excluded from a potential merger with the merchant bank. Bper rises +1,3%: it could sell a significant part of its stake in Arca.
STM AND PRYSMIAN ADVANCE
Avanza stm +2,2% on the wave of US-China détente and "in view of Apple's results to be released on October 30th".
Tim -0,1% should be the leader of the consortium of subjects aiming to buy 100% of Open Fiber. Prysmian + 2,1%.
SPRINT DEBUT OF ARTERRA AT AIM
Out of the main basket:
Banca Akros cut its target price by Sogefi -3,24%, confirming the recommendation accumulated after the results of the third quarter of 2019.
He finally made his debut on Aim Italia Land +31,21%, an innovative green biotech SME that deals with research and development of biotechnologies.
