Red wave on the price lists, with the change of pace of Wall Street in the American morning and the oil crash: Business Square it closed down by 0,78%, after the holiday break, falling to 21.785 points, in line with the other European markets. The worst is Madrid -1,59%; fractional losses for Paris -0,85% and London -0,46%. It just saves Frankfurt, which remains at zero, supported by Volkswagen +3,81%, after the presentation of the first quarter results (operating profit is down, but would be up without the exceptional charges for legal risks due to the dieselgate).
Wall Street seems particularly volatile, after a weak start it had in fact moved into positive territory while it is currently in sharp decline. Weigh the Petroleum: Brent loses 2,94% and falls to 70,06 dollars a barrel, while in New York WTI loses 3,9% and falls to 61,12 dollars a barrel. Furthermore, the words of Jerome Powell yesterday are still being evaluated, who disappointed those who bet on a cut in rates in the current year, but made the banks breathe a sigh of relief. For the president of the Fed, there are currently no reasons to touch the cost of money, either up or down. Still on the subject of central banks, the BoE (Bank Of England) today left rates unchanged at 0,75%, but improved the forecast for British GDP from 1,2% to 1,5%, considering that Brexit will have a less impact than previously estimated.
On the macroeconomic front, the climate remains variable in the euro area. In Italy, manufacturing activity contracted for the seventh consecutive month in April and new orders are still below the 50 threshold that separates growth and contraction, but at least the pace of decline has slowed. The single currency area index was weak, rising but only at 47,9 points. German trade performance disappoints as retail sales fell more than expected.
Consequently theeuro, after a few breathing sessions, is moving weakly against the dollar, around 1,117.
Italian bonds performed well, still in the wake of the narrow escape of recession and growth of 0,2% after two quarters of decline. The yield of the 10-year BTP is 2,56%, lo spread with the Bund it narrows to 252.50 basis points (-0,47%).
Gold below $1270 an ounce.
The weakness of oil is felt on the energy stocks of Piazza Affari: Saipem -4,14%; Tenaris -2,87%. Down Finecobank -2,64% and Pirelli -3,1%. Salvatore Ferragamo loses 2,6%, after Jefferies' decision to cut the recommendation on the stock to "underperform" (price target at 18 euros). Down fca on the eve of the accounts, -1,34%. The Italian-American company completed the sale of Magneti Marelli to CK Holdings, the holding company of Calsonic Kansei Corporation, for a cash consideration of approximately 5,8 billion euros and decided to distribute a extraordinary dividend in favor of holders of FCA ordinary shares of 1,30 euros per share, equal to upstream dividends of approximately 2 billion, out of the net proceeds of the transaction.
Purchases reward Buzzi +1,26%; General Bankingi +0,72%; Mediobanca +0,57%; ; Ivy +0,57%. Well, Unicredit +0,39%, the only one among the Italian banks on which UBS confirms the "buy" recommendation in a report today.
Off the main list goes into orbit Gima Tt +22,84%, following the green light on in the US for Philip Morris's "non-burning cigarettes". The Bologna-based company is in fact specialized in the creation of innovative packaging lines for the tobacco market and supplies Philip Morris with the machinery for packaging IQOS products. Equita has a buy opinion on the stock with a target price of 7,5 euros. The news also drags up the main jewel of the Vacchi house, that is Ima +7% parent of Gima
