Dear Stock Exchanges, do not be afraid: the Federal Reserve is with you. This is the message that Jerome Powell launched in every possible way in the press conference following the meeting of the Federal Reserve leaders. Not only has the central bank not touched rates, but it has canceled all the hikes already planned for 2019, leaving one for next year for now.
In addition, the liquidity drain through the federal budget reduction that bothers Wall Street so much will end in September, three months ahead of schedule. Such prudence can be explained by the slowdown in the economy, but, the Fed chairman immediately added, don't worry: the United States is doing well, 2019 will be only slightly less lively with a growth rate of 2,1% (in any case very lower than the 3,3% estimated by the White House). In short, from hawk to super-dove, just as Donald Trump likes it, who can thus play his game of poker with President Xi without fearing unpleasant surprises from the stock exchanges. And so the price lists have received without too many problems the news that "the tariffs on China will remain for quite a while" before an agreement of substance is reached. Meanwhile, the red president is preparing to land in Italy for a brief visit which promises to be historic due to the opening of a new outlet on the Silk Road.
The climate is positive for the Stock Exchanges, with the exception of the banks, negative for the quotations of the bond lists. Curb the dollar in favor of commodity prices.
The Asian markets rose slightly: Hong Kong +0,1%, CSI 300 of the Shanghai and Shenzhen lists +0,6%, Seoul +1% under the pressure of tax incentives for listings. Tokyo is closed for a holiday.
WEAK WALL STREET, LEVI'S ARRIVES TODAY
Contrasted Wall Street: the positive reaction to the Fed's announcements only partially corrected the weak trend, to be linked to the tariff negotiations: Dow Jones -0,55%, S&P 500 -0,29%. Nasdaq up +0,07%.
The indexes were held back by the disappointing data from FedEx (-3,5%): the company, considered a sensitive indicator of the economic trend, has issued a warning on the trend for the coming months.
Today the market is about to welcome the debut of Levi's, the most eagerly awaited newcomer, which will offer bonds worth 675 million dollars.
BANKS DOWN, BONDS AT 15-MONTH LOWS
The finance sector was also weak (-2,1%) against the decline in bonds. The yield on the 2,52-year Treasury note plunged to 2018%, its lowest since January XNUMX.
The dollar retreats against its major counterparts. The Chinese yuan appreciated for the fifth consecutive day to 6,67 against the US currency, reaching its highest level since July.
The euro-dollar exchange rate rose to 1,141 in closing yesterday evening (+0,5%), this morning it is at 1,142.
FALLING STOCKS PUSHING UP CRUDE. SAIPEM AT THE BEST
The slowdown in the US currency, combined with the sharp drop in US oil inventories, pushed up the price of Brent crude, to 68,5 dollars a barrel, +1,3% at the end. This morning we are at $68,6, the highest since November.
In Piazza Affari, Saipem stands out (+0,5%), at new six-month highs. Eni -0,5%, Tenaris -1%.
BAYER AND BMW SINKING FRANKFURT
Bad news for some German giants and the increasingly complicated evolution of Brexit conditioned the session for the European markets. Frankfurt price list news arrived of Bayer's conviction before the California judges, soon followed by BMW's profit warning. Complicating matters, finally, is the Brexit mess. In this context it is not surprising that the price lists have fallen into the red.
Milan dropped 0,47% at 21.330 points. Bringing up the rear was Frankfurt (-1,59%) penalized by the sales of two titles.
Bayer -10,10%. A California jury said it found glyphosate, a phosphorus-based herbicide produced for decades by Monsanto, a company bought last year by Bayer, to be carcinogenic. The settlements could amount to about $5 billion.
BMW -4,5%. The company expects gross profit to fall more than 10% in 2019 on rising costs
Paris (-0,80%) and Madrid (-0,91%) also fell sharply.
MAY ASKS FOR AN EXTENSION, STERLING IN FREE FALL
A paler red for the London listing -0,45% supported by the weakness of the pound down against the dollar to 1,319 (-0,5%).
According to the President of the European Council Donald Tusk it will be possible to grant the United Kingdom a brief postponement of Brexit only if the House of Commons next week votes in favor of the deal that has already been rejected twice. Brussels is not against granting the extension, but will only do so if the agreement is approved. So the decision will not be made in the next 2 days, but another summit could be called on March 28th. A response that seemed scarcely reassuring to the market, which continued to penalize the pound and, at times, the euro.
THE SPREAD RISES ON THE EXCHANGE DAY
Italian government bonds were in negative territory, especially at the long end of the curve, after this morning's exchange operation in which the Treasury assigned 2 billion BTPs in March 2030, coupon 3,50%, and withdrew a total of 2,16 2020 billion in five bonds between Btp and Ccteu with maturities between 2024 and XNUMX.
At the end, the 2,514-year rate settled in the 2,486% area, after closing yesterday at 244%. The spread is 239 basis points, from XNUMX at the previous close.
PRYSMIAN SHINES, FCA BRAKES
Among the shares, Prysmian shone (+4,3%), which benefited from the early closure of the repair works on the underground section of the WesternLink cable at very strong volumes, above the 30-day average.
Fiat Chrysler (-2,5%) suffered along with the entire European sector (-2,3%) after BMW's profit warning. Down also Ferrari (-0,9%), Cnh Industrial (-1,3%) and Exor (-1,10%).
The banks were bad, even if less than the stoxx in the European sector (-1,3%): Banco Bpm was the worst at -2,7%, Ubi Banca was also negative at -2% and Unicredit at -0,8%.
On the other hand, Poste Italiane (+0,96%) is doing well, continuing to rise on the wave of results. Banca Akros raised its target price to 9 from 8,3 euros, confirming the accumulated recommendation.
DEL VECCHIO THREATENES DIVORCE FROM ESSILOR
Moncler closed at -1,7% at 36,41 euros. The Eurazeo fund, with the flash placement launched yesterday, liquidated its stake: the 12,2 million shares remaining in its possession, equal to 4,77% of the total, were put on the market at 36,5 euros, 55 cents less than the closing price.
The joint venture between Luxottica and Essilor risks having a short life. Leonardo Del Vecchio yesterday evening denounced in an official note "the violation of the governance agreements" by the French shareholder, threatening to take "the necessary measures to protect his own interests". The dispute is linked to Del Vecchio's request to transfer part of his powers to his trusted man, Francesco Milleri.
IN STRONG DECLINE DATALOGIC, SPUN OF MOLMED
Datalogic -8,7%. The optical reader manufacturer closed 2018 with revenue growth of 4% year on year, to 631 million euros. Ebitda +2% to 106 million euros. Q4 revenues were up 6%. The company confirmed the 2019 targets presented in the past. Banca Akros cuts the judgement.
Molmed +1%, has received the authorization to proceed with the development in the clinical setting of a CAR-T type therapy for some types of blood cancer.
Rcs still down (-4,6%) despite the return to the dividend announced in recent days.
