At the end of July, the four horsemen of the upside, Facebook, Amazon, Alphabet and Netflix were capitalizing a total of 2.500 billion dollars. Yesterday evening, the sum stopped at 1.930 billion. In just a few months, more than 500 billion dollars have gone up in smoke. Between yesterday and Friday the drop was 200 million. An impressive "sboom", which falls into a complex political situation, both in Europe and, above all, in terms of relations between China and the United States.
Donald Trump last night threatened to introduce a tax on all Chinese goods entering the United States before the end of the year in case the summit between Xi Jinping and Trump in Buenos Aires fails.
TOKYO RISES, YUAN AT TEN-YEAR LOW
But the Bull, from Piazza Affari to Asia, is proving capable for now of reacting to the difficulties of October, which is confirming that it is traditionally the most difficult month.
The Tokyo Stock Exchange is starting to close the session with an increase of around 2%. After Monday's losses, the CSI 300 index of the Shanghai and Shenzhen stock markets also rebounded, up 1%, from -3% yesterday.
The dollar hits a ten-year high against the Chinese yuan, at 6,96. China's central bank narrowed the yuan's trading band by 0,3% tonight to 6,957 against the dollar, a level not seen in more than a decade.
AMAZON STILL IN DECLINE, FLYING RED HAT (+49,2%)
Wall Street closed lower last night, but far from the lows of the session. The Dow Jones lost 1%, the Nasdaq 1,6%. Large high-tech companies such as Amazon (-2%) are down.
However, Red Hat flies (+49,2%) after the purchase of Ibm. The companies that work for the Pentagon are also down, penalized by rumors about upcoming cuts to the defense budget.
Brent oil is down to 77,1 dollars a barrel, yesterday evening it closed at 77,3 dollars (-0,3%).
The euro moved little, around the lows of the last two and a half months, at 1,137, after the upturn in German political life.
EURO LOWS AFTER ANGELA MERKEL'S ANNOUNCEMENT
Mutti, you can't do this to me!" So headlines, Les Echos with irony mixed with concern, the news that Angela Merkel will not appear in October at the CDU congress, the first stage of the abdication of the Queen of Europe, after 12 years and 11 months at the head of Europe in the German style . But the news did not slow down the rebound of European lists after the narrow escape of the Italian rejection by Standard & Poor's. Today, however, another exam is arriving: the publication of the GDP for the third quarter of the European Union, of France and, above all, of Italy, the special observation.
FLY MILAN, CHINA GIVES WINGS TO THE GERMAN CAR
The Milan Stock Exchange thus started the week with a bubbly session, archiving a long string of negative results. The Ftse Mib index (+1,91%) closed the session just above 19 (19.091). The loss since the beginning of the year is around 12,5%, not far from that of the Frankfurt Dax (-12%).
Frankfurt increases (+1,27%), not very sensitive to the disappointing result of the Cdu in the elections in Hesse but attentive to the signs in favor of the car arriving from China: Continental +6,80% flywheel), Volkswagen (+4,7 %) which last year sold 4,17 million units in China, about 40% of its total world deliveries, Daimler (+3,64,16%) and BMW (+2,66%).
London performed well, driven upwards by the rally of the banking giant HSBC (+4,76%) after a 28% increase in profits in the third quarter, exceeding market expectations.
Madrid +1,05%, despite Bankia's setback (-4,7%). Paris +0,44%.
LIQUIDITY FAVORS AUCTION OF BTPs
With the spread below 300 basis points, the conditions were met this morning for a successful outcome of the 5,5 billion euro BTP auction, another very important test for the Treasury. There are conditions for success, also because this week ten billion euros of government bonds due to mature and five billion coupons in payment. Liquidity should not be lacking.
Yesterday evening the 3,34-year benchmark rate, at auction today, traded at 3,44% from 3,26% at the end of Friday's session after a plunge to 5%. However, rates are seen to have risen significantly compared to the placement at the end of September: the yield on the 2,60-year BTP was quoted at 2,03% at the close from 3,34% at the last auction, while the 2,90-year BTP was worth 2013% at the same time from 2014% at the end of September. If confirmed, they would be the highest since December XNUMX and February XNUMX, respectively.
Yesterday all six billion euros of six-monthly BOTs were placed, with the rate decreasing. The average yield fell to 0,159% from 0,206% of the placement at the end of September. Demand was essentially stable.
BOUNCE THE CREDIT SECTOR
The increases were led by the credit sector which, with a leap of 3,6%, led the recovery of the banks of the Old Continent (+2,9% for the European Stoxx). The most sacrificed stocks rebound, starting with Banca Bpm (+5%), Bper (+4,08%) and Ubi (+3,7%). Same script for the big names: Unicredit +4%. The consensus for the third quarter accounts indicates an average net profit of 907 million and revenues of 4,771 billion, as stated on the bank's website. Entente +3,28%.
The unanimous increase also involves the most fragile stocks: Mps +7,6% and Banca Carige +6,52%.
TELECOM ITALIA TOWARDS THE SQUARED EXCLUSIVE ON PERSIDERA
Even Telecom Italia, sensitive to the cost of Italian debt, does better than the sector in Europe: +4,4% against +1,75% of the sector's Stoxx thanks also to the promotion of Deutsche Bank. The board of directors could today grant the exclusivity to the US fund I Squared Capital for the sale of the subsidiary Persidera. The Bolsonero effect also pushed the stock: the Rio de Janeiro Stock Exchange recorded six weeks of consecutive increases.
Fiat Chrysler (+1,7%) instead does less well than the European Stoxx auto sector (+3%), because the possible positive news coming from China in terms of market opening would not have an immediate positive impact on the group.
STM BOUNCES, ANSALDO STS FLYES UNDER THE TAKEOVER OFFER
Stm rebounds (+5,5%) after the recent declines. In September, global chip sales rose 14% year on year, slowing down from the growth rates of the previous months: August +15%, July +17%, June +20%.
Cala Leonardo (-1,83%). On Saturday evening a helicopter - an Augusta Westland AW169 - crashed shortly after take-off from the King Power Stadium, Leicester's stadium at the end of the match between Leicester and West Ham: it was the "first accident involving this aircraft.
Ansaldo Sts leapt by 9% to 12,64 euro, approaching the price of the takeover bid on unowned shares launched by the majority shareholder Hitachi after the agreement for the purchase of the entire 31,794% stake which makes headed by Elliott at 12,7 euros per share.
LUXOTTICA-ESSILOR STARTS, CAPITAL INCREASE FOR SAFILO
Luxottica, on the other hand, was weak (-0,58%) on the day in which the public exchange offer promoted by EssilorLuxottica began on the ordinary shares not already owned by the holding company. Rbc has raised its opinion on the market-performing group, target price of 54 euros.
Safilo closes higher (+4%) after the go-ahead from the shareholders' meeting for the capital increase of up to 150 million euro necessary to support the debt refinancing plan.
Leap by Isagro (+10,5% to 1,478) euro after confirmation of the Buy by Banca Imi, target price 2,10 euro.
Update the D'Amico minimums (-13,01%).
