The European financial week starts in the red. The worst place is Milan, down by 0,6%, a little below 19.600 points. The index is also held back by the interim dividend distributed by Enel and Snam, which accounts for 0,3% of the global figure.
Frankfurt, the most sensitive to the slowdown in Chinese GDP (only +6,6% in 2018, the worst result since 1990) leaves half a percentage point on the ground. Lower discounts for Paris -0,1%, Madrid unchanged. London +0,2%.
Today the US stock exchanges will be closed for the recurrence of the Martin Luther Day memorial.
Brent oil traded at USD62,5 a barrel this morning, down 0,3%. Thanks to +2,8% on Friday, last week closed with a gain of 3,7%. In 2018, Chinese refineries worked at full capacity, reaching 603 million of crude oil processed, equal to 12,1 million barrels per day, a new record. Saipem -1,8% after downgrade.
Expectations of a settlement between China and the US deflated gold, shedding 0,8% on Friday. Not moved this morning at 1.279 dollars an ounce. The dollar travels to the highs of the last two weeks after the cold shower from the latest Chinese macro data. The pound is particularly weak against the greenback, which is feeling the effects of Theresa May's difficulties. The British prime minister will try to resolve the Brexit stalemate this afternoon by explaining to Parliament her new proposals for leaving the Union, but the chances of success are only modest. However, the hypothesis of a postponement of the deadline of 29 March takes off.
The spread between the ten-year BTPs and the corresponding German Bunds, after the rise to 256 points recorded in the morning, returns to 252. Announcements on the next auctions will arrive tonight.
Of Ctz and indexed and on semi-annual BOTs on the agenda on Wednesday and Thursday evening, while Friday evening will be the turn of the terms of the medium and long-term auction on Wednesday 30 January, in which the Treasury could offer a new Ccteu or a new BTP at ten years.
Chinese difficulties weigh on luxury stocks: Salvatore Ferragamo -2,1% and affected by the downgrade of Citigroup, among the worst blue chips today. JP Morgan also reduced the target price to 17 euros from 17,50 euros, maintaining the Neutral rating. Bryan Garnier lowered the target price to 18 euros from 20,40 euros, keeping the Neutral. Tod’s -0,55% after Citi downgrade.
Also in red Tim -2% to 0,479 euros, canceling the gain accumulated since the beginning of 2019. Brokers worsen their view on the stock after the profit warning, the escalation of the clash between the two main shareholders which risks destroying other value. Exane reduced the target price to 0,35 euros from 0,36 euros, confirming the Underperform recommendation. Kepler instead maintained the Buy, but drastically cut the target price to 0,65 euros from 0,90 euros (-28%).
in Frankfurt Deutsche Telekom loses 2,4% after Berenberg cuts the stock to sell.
Weak banking sector with losses around 1% for all major institutions. The Stoxx of the sector drops 0,77%. Intesa down 0,37% and Unicredit -0,8%. Also bad is Ubi -1,29% which could be solicited by the government to join the Monte Paschi Bank -0.57%.
To report that Essilor Luxottica has reached 97,5% of the share capital, treasury shares included, and will therefore proceed with the right to purchase and fulfill the obligation to purchase the remaining shares. At the end of the procedure the security will be delisted.
Trevi flies to +13% on the rumors of the definitive ok of the banks to the project of industrial recovery and the recapitalization of the company.
