European stocks generally down while the climate heats up around the Italian manoeuvre. Piazza Affari -1,89%, closed the day at a low of the day at 19.087 points after the news that the commissioner for economic and monetary affairs, Pierre Moscovici, will deliver today to the minister of the economy, Giovanni Tria, a letter in which he raises the fears of the European authorities about the Italian manoeuvre. Based on the Italian responses, the Commission will decide by 31 October whether to consider the 2019 draft budget generally in order with the stability pact and the commitments previously undertaken by Italy or whether to request amendments.
The fever on government bonds has risen again: the 3,642-year yield has reached XNUMX%, the Btp/Bund spread reached 325 points, the highest in five years. For economists the yield already incorporates a one notch downgrade by Moody's with a stable outlook. The other European lists were also down: Frankfurt -0,64% and Madrid -1,12%. Limit damage Paris -0,27%. Weak oil: Brent slips below 80 dollars.
Among the titles of Piazza Affari it stands out downwards Buzzi Unicem -6,43% after the heavy downward revision of the German rival's estimates for 2018 Heidelberg Cement -8%. Weak too stmicroelectronics -5%, after the increase on the eve and after the Taiwanese TSMC provided lower-than-expected guidance for the fourth quarter. After the initial increases, bank bonds weakened, thanks to the widening of the BTp/Bund spread. The worst is Bpm bank -5,8%. Fineco -4,67%.
Purchases reward instead Telecom Italy +0,74% in line with European telecommunications and luxury stocks, after the sell-off that hit the sector: good Ferragamo, Moncler e Luxottica with increases between half a point and one percentage point.
Wall Street was also down: Nasdaq -1,12%, Dow Jones -0,6%, S&P500 -0,4%. Faced with a 'hawkish' Fed that favors raising market rates (the two-year opened at 2,9% above the highs since June 2008) and the new rain of sales on the Chinese Stock Exchange (-4% to a 4-year low, yuan at January 2017 levels) investors tend to overlook the best quarterly than expected such as those of Travelers, Bank of New York Mellon, and Alcoa +8,2% in the aftermath of higher-than-expected accounts.
