Uncertain start of Piazza Affari, awaiting indications on the maneuver. Milan +0,11%. marks a timid rise around 19.300. The other European price lists are no better. A breakdown delayed the opening of Frankfurt +0,09%. The prices show that the electoral turnaround in Bavaria it was already discounted in prices but the Dax index remains around its lowest level since February 2017. Since the beginning of the year, the index has lost 10,7%, more or less like Piazza Affari (FtseMib index -11,5%). Weaker are Paris -0,3% and Madrid -0,1%. European equities fell mid-session to 22-month lows.
London is also weak. The pound loses its shots at 1,1318 against the dollar (-0,27%) after the setback recorded in the Brexit talks. The euro rose to 1,1560 against the dollar but retreated against the franc.
On the fixed income front, Portugal shines after the Moody's promotion: the spread is reduced below 200 points. In the meantime, the signs of improvement for BTPs are disappearing: the 3,57-year bond returns to 3,51% (from XNUMX% in the morning). The Bund spread remains above 300 points (307) at 12. In the evening the draft of the budget law should be sent to Brussels. Deputy Prime Minister Matteo Salvini says the budget bill will be ready by the end of the week.
Oil remains above 80,8 dollars a barrel. The case of the Saudi journalist Jamal Kashoggi who was killed and hacked to pieces in his consulate in Istanbul on October 2 is getting worse, as accused by Turkey. The news of the crime against the Washington Post journalist, very well introduced in Riyadh, risks jeopardizing the investor conference, the “Davos of the desert”, scheduled for late October in Saudi Arabia. To Trump's threat of a "severe punishment" if Saudi responsibilities are ascertained, Saudi Arabia has replied that it will respond with an "even stronger action" At the risk of military contracts for 100 billion dollars.
At Piazza Affari Saipem salt of 1,8% announced to have received contracts for a value of 400 million dollars, these are works to be carried out in Azerbaijan, the North Sea and the Democratic Republic of the Congo. It is the first order announced in the fourth quarter. JP Morgan cuts judgment this morning. Eni + 0,9%.
Turkish lira advances on the highs of the last two months against the euro. Last week it rose 4% away from the negative record set in 2018. A Turkish court has decided to release American pastor Andrew Brunson from house arrest. Other emerging currencies improve: the Argentine peso is at its highest since the end of August against the euro. There are also signs of recovery in the Russian ruble, the Mexican peso and the South African rand.
Coming back to more domestic themes it stands out Telecom Italy among the best blue chips and among the best European telephones at 0,50 euro +1,7%. After a sluggish start, the banking sector climbs by 0,8%. In shape ISanpaolo agreement +1,4 to 2,05 euro, +1,8% (+0,3% the Eurostoxx Banks) and Unicredit + 0,6 %
Since the beginning of the year, the performance is in the red by 26%, after reaching a maximum of +16% in April. FtseMib -12%, Eurostoxx Banks index -22%. Considering the dividends paid, the loss drops to -20% (-22% Unicredit). Sale Carige + 2%.
Minus sign for the automotive sector with Brembo down more than 2% to its lowest since July 2016. Pirelli +0,3% has recently announced the agreement for the patent box for the three-year period 2015-2018 (54 million benefit) rises by 0,3%. The entire European automotive sector has been under pressure since the beginning of 2018 with a 20% drop.
It also goes down Ferraries -2,4%, increasingly assimilated to the luxury sector, which in turn returns to decline: Fwe wander -0,8% Moncler-1,8% Cucinelli -2,8%. Bucking Tod’s, which is up 1,6% below the highs. Also worth noting is the new round of Astaldi -7,66% now in volatility auction.
