Brutal awakening of the Milan Stock Exchange, after the sparkling start of 2017. The Ftse Mib today reverses course and closes at -1,66%, the worst price list in Europe. However, the psychological threshold of 19.000 points remains intact (19.360) and, according to some analysts, this reveals an ongoing bullish trend. Among the best titles Fiat and Stm. Banks, on the other hand, are sinking, with Unicredit in the lead.
The other markets of the continent were also weak, with the exception of London +0,44%. Fractional reductions in Frankfurt -0,27%, Paris -0,45%, Madrid -0,18%. Contrasted opening for Wall Street, where Dow Jones and S&P retreat, while the Nasdaq advances. There is expectation for the start of the quarterly season, scheduled for Friday.
Financials are sinking on the Ftse Mib, partly due to profit taking after last week's gains. Typical example: Banco Bpm, -3,93%, for which the balance however remains largely active, given the approximately +26% centered in the first octave.
The sales hit Unicredit -5,11%, the worst stock among the blue chips in Milan, a few days before the meeting for the 13 billion capital increase and despite the broker Jefferies bringing the target price to 3,5 euros from 3 euros. Vertical drop for Mediobanca -4,52%, but also for Intesa -2,67% and Ubi -4,25%. Losses exceeding two percentage points for Unipol, 2,69% and Generali -2,21%.
A day to forget for many stocks, in various sectors: Telecom -3,07%; Post -2,14%; Prysmian -2,4%; Cnh -1,65%. Italgas, -1,83%, in mid-afternoon stands out for the sad record of worst stock in the Stoxx Europe 600 Utilities. According to Reuters, today the company launched a road show with European investors which will end on Thursday and which will lead to the launch of a senior unsecured bond in euro, the first after the spin-off from Snam.
The plate cries for oil: Saipem -3,11%; Eni -2,1%; Tenaris -0,7%; while Brent fell, -2,8% to 55,5 dollars a barrel, partly due to the increase in drilling rigs in the USA, which slightly dulls the effect of production cuts.
On the other side of the river the following stand out: Stm, +3,04%, on which Ubs analysts have raised the target price from 8,1 euros to 10 euros, confirming the judgment at Neutral. Purchases from Terna +0,32%; Brembo, +0,25%, of which Mediobanca raised the target price of the share by a good 10 euros to 69 euros and confirmed its outperform; Yoox +0,44%. Place of honor for FCA, +1,41%, on the day of CEO Sergio Marchionne's utterances at the Detroit Motor Show. "I confirm all the group's objectives for 2018 - says the manager - and on the dividend I hope a little sooner". Investments in the US of one billion dollars announced by 2020, with the creation of 2000 jobs. At the news, the new president Donald Trump chirps: "thank you".
On the macro front: unemployment is growing in Italy, according to a preliminary estimate of November by Istat +11,9% (on the highs since June 2015) against the 11,6% forecast by analysts. The November unemployment rate in the Eurozone at 9,8% was stable and in line with expectations. Finally, German industrial production in November grew by 0,4% on a monthly basis against the expected 0,6%.
The euro appreciates against the dollar (+0,33%, exchanged at 1,056) and the spread contracts. 10-year Italian BTP versus German Bund – 4,2%, 162.10 basis points, yield 1,62%.
