Fasten your seatbelts: another wave of violent declines is looming on stock lists, including Piazza Affari. Prediction is easy after the fastest stock market crash in history: this morning Shanghai closed its doors after just 14 minutes, enough to cause a 7% drop in prices, the threshold beyond which the automatic suspension of trading is triggered.
The sell-off was triggered by the new devaluation of the yuan: the Beijing authorities this morning set the exchange rate base level at 6,5646 against the dollar, the lowest since March 2011. The move was interpreted by the markets as a sort of declaration currency war on the part of China, with the aim of buffering the crisis that hit the services sector after manufacturing.
The response of the other markets was immediate: Tokyo, in the middle of the session, lost 1,7%, Hong Kong -2,8%, Sydney -2,2%. The Australian dollar, the most sensitive to fluctuations in the yuan, lost 0,5%.
THE BRENT BELOW 34 ALTITUDE, STILL DOWN APPLE
Meanwhile, futures signal a downward opening for European stock exchanges: London -77 points to 5996, Paris -67 bps to 4.413, Frankfurt -170 to 10.044. The forecasts for Wall Street are no different: contracts on the S&P index report a drop of 1,1%. Yesterday evening the US stock markets closed in the red: Dow Jones -1,47%, S&P -1,31%, Nasdaq -1,14%.
It weighed on the American lists the new drop in oil which broke the barrier of 34 dollars downwards, at its lowest since February 2009. This morning Brent is trading at 33,46 dollars (-6% compared to yesterday).
Apple still down: -2% to 100,70 dollars after slipping below 100 in the session. The market discounts the drop in iPhone 6 orders from China.
MILAN THE WORST STOCK EXCHANGE, BTPS GOOD
Yesterday Milan was the Stock Exchange that paid the highest price for the crisis: the Ftse Mib index lost 2,67%. Less marked losses for the other indices, recovering in the final: Frankfurt -0,93%, London -1,04%, Paris -1,26%. Geopolitical tensions and the slowdown of the Chinese economy overshadowed the good macro news coming from the USA and the Eurozone.
The US economy is improving (PMI rose to 54 points in December from 53,5 in the previous month) and the trade balance deficit also decreased to -42,3 billion dollars in November from -44,5 in the previous month, given above waited for them. However, the publication of the minutes of the Fed meeting raises doubts about the stability of the global recovery and the uncertainty could affect the next moves on rates. Fed vice president Stanley Fisher reiterated that a one-point increase in 2016 (staggered over four stages) is possible, barring surprises. Like those arriving from Shanghai and the oil market.
The comforting data from the Italian manufacturing index, at its highest since February 2011, was also completely ignored in Piazza Affari. But the positive trend of government bonds was confirmed in a context of risk aversion. For the first time since the end of November, the 10-year rate slipped below 1,50% to 1,47%. The German 15-year yield (August 2025, 0,50) was traded in the XNUMX% area, a threshold that had not been seen, also in this case, since the end of November.
BRAZIL KILLS FCA, FERRARI BRAKES
Today more than ever, however, the performance of Piazza Affari is conditioned by the moods of international investors: in 2015, for the first time the share of the Italian market controlled by foreign operators exceeded the 50% threshold. Therefore, the sudden crash of Fiat Chrysler shouldn't come as a surprise: -5,2% in the afternoon, after the note from the group's Brazilian dealers' association which shows a 2015% drop in sales in 25,9. For 2016 a further slowdown (-5,9%) of the carioca market is expected.
Ferrari also passed into negative territory in the final (-1,1%), sucked in by the generalized decline in Piazza Affari, reversing the 3,3% rise in the morning (maximum 46,19 euros). According to what was communicated by the Amsterdam Stock Exchange Authority, where the company has its registered office, Sergio Marchionne holds about 0,8% of the capital of the Maranello company.
This morning, Goldman Sachs analysts adjusted the target price following the spin-off of Ferrari, bringing it to 13 dollars (12 euros) and confirming the stock in its Conviction Buy List, the list of stocks to buy without a doubt.
CNH-1,5%. Volkswagen (-2%) also wiped out the substantial gains from the start of the day.
BANKS UNDER FIRE, BLACK JERSEY FOR MEDIOLANUM
On a day in deep red for all sectors, the decline was particularly significant for the banks. Montepaschi (-3,3%) has marked a new all-time low. Even heavier was the fall of Unicredit (-4,5%). Down Intesa (-2,5%) and Mediobanca (-2,4%). The Popular companies are under fire: Bpm (-3,7%), Popolare Emilia Romagna (-4%), Banco Popolare (-4,2%).
The disappointing performance of the Stock Exchanges is sinking asset managers, despite the positive data on funding. Banca Mediolanum (-6%) was the worst blue chip. Azimuth -2%, Soul -4%, Post Office -1,3%.
PRADA -5,63% EVEN TODAY. CHINA SINKS LUXURY
Prada stock dropped again this morning in Hong Kong: -5,63% from the all-time lows reached yesterday morning. Thus another dramatic day is looming for luxury, the sector most sensitive to the Chinese demand crisis. Ferragamo, -2,6% yesterday, has left more than 2016% on the ground since the beginning of 10. Moncler (-1,1%) and Yoox (-2,6%) also fell. Brunello Cucinelli -2,4%. In Paris, Lvmh fell by 1,80%, to its lowest since August.
THE OILS ROLL. BETTER UTILITIES
Difficult day for oil companies too, even before the evening sales broke out on the US market where the energy sector closed at -3,6%. Eni fell by 2,8%, Saipem -3,7%, Tenaris -2,3%. Trevi sinks (-6%). The utilities did better: Enel -2,4%, Snam -0,9%, Terna -1,6%, Enel Green Power -2%. Finally, Telecom Italia (-3%) and Mediaset (-3,8%) are down.
