THE FED GIVES WINGS TO THE MARKETS: RATES UP BY MID-YEAR. WALL STREET AND ASIA FLY
It requires patience. And be patient. It won't be "a considerable time" before the Fed hikes rates. But, reads the final communiqué, "the Fed will know how to be patient before proceeding to normalize the trend of monetary policy". Markets welcomed the central bank's new guidance despite Yellen saying that "from now on the decision to hike rates could be at any Fed meeting, although that is unlikely to happen." in the next two meetings”. That is, no increases until March. It is easy for the first touch-up to take place in the middle of the year, as already foreseen.
Wall Street accelerated to the upside: the Dow Jones index gained 1,69%, but the S&P 500 went up to 2,2% and the Nasdaq to 2,12%. The reaction of Asian price lists is no less robust. In Tokyo, the Nikkei index rose by 2,4%, Hong Kong +1,4%. The dollar rose, but without jerks: 1,2325 against the euro, 118,85 against the yen.
YELLEN: THE DECREASE IN THE OIL IS POSITIVE FOR US
"From a US perspective, we believe that lower oil prices could be positive," Yellen said, adding that "it's definitely good for families." Brent rose by 63 cents to 60,64 dollars a barrel, Wti to 56,63 dollars (+16 cents). The index of energy stocks rose by 3,7% in the USA. The European Stoxx is also recovering: +2,7%. But the decline in black gold resumed in the evening: Russia has made it known that it shares Saudi Arabia's strategy. Production will not drop, with a strong impact on prices, as long as US shale oil producers do not reduce extractions.
PIAZZA AFFARI REDUCES LOSSES THANKS TO ENI
In Milan Eni it recovered its initial losses closing at +1,8%. Equita has reduced the target price from 19 to 15,5 euros. Tenaris + 2,1% Saipem +0,5%. UBS has cut the target price from 12 to 7,5 euros. The recovery of the six-legged dog coincided with the recovery of Piazza Affari: from -2% in the middle of the session to -0,5% at the end. In the wake of the Fed, a brilliant start is looming for the European markets, yesterday with cautious expectations: London +0,2%, Paris +0,5%, Frankfurt unchanged.
RUSSIAN FEVER COMES DOWN, BLACK SMOKE IN GREECE
In fact, the Russian fever has cooled down. The ruble rose 9% to 61,7 against the dollar after Moscow's central bank announced it was working with the government on a series of measures to provide additional capital to Russian banks and financial firms if needed . Finally, the Athens Stock Exchange recovered +3% on the day in which the race for the presidency that worries Brussels so much got underway. Prime Minister Antonis Samaras' coalition failed to obtain the two-thirds of the votes required for the election of Stavros Dimas. The former EU commissioner obtained only 160 votes out of a minimum of 200. 135 votes against and 5 parliamentarians absent. Dimas will have to get at least 180 by the third ballot or the country will go to the dreaded early vote.
BANKS, UNDER FIRE MPS -2,8% AND THE "HUNTER" UBI
Yesterday the negative day of the banks weighed on Piazza Affari: the Italian index fell by 0,96%, almost double the European one. The securities at the center of the numerous hypotheses of mergers in the post AQR sector suffered in particular. Both the potential "prey" Monte Paschi -2,8%, and the possible "hunter" Ubi -2,5% are back. In negative ground too Understanding -1,2% ed Unicredit -0,4%.
GOLDMAN PUNISHES UTILITIES. HELLO ONLY HERA AND A2A
Bad day for utilities conditioned by the judgments of Goldman Sachs. Back off Enel -1,8%. The US broker reduced the target price from 4.5 to 4,4 euros (neutral). The CEO, Francesco Starace, instead confirmed this year's targets. Enel Green Power -1,1%. Also declining Terna -1,3% (rating sell), Snam -0,8% (neutral opinion, target price from 4,35 to 4,25 euro).
Instead, Hera was promoted -1,13%: the analysts of the US company confirmed the buy rating, leaving the stock on their conviction list and raising the target price to 2,85 euros. Most of all it stands out A2A with an increase of 1,1% triggered by the promotion to Buy from Neutral (target price at 1,04 from 0,97).
RUSSIA WEIGHTS IN ON BUZZI AND DE LONGHI
Down in the rest of the price list Telecom Italy -1,2% and Fiat Chrysler -1%. Bad day for Finmeccanica which records a drop of 2,2%, the subsidiary Ansaldo Sts lose 1%. Stocks most linked to Russia suffer: Buzzi -2,5% and De Longhi -2,7%
