Talks between China and the US continue. The two delegations have decided to extend the negotiations on the subject of duties, confirming that an agreement is in the air. The news has brought good humor to the price lists, regardless, for now, of the increasingly bitter confrontation between Donald Trump in the House, with a Democratic majority.
Yesterday evening Trump, confirming the lockout of federal offices (and leaving public employees who, in his words, "vote for the Democrats a lot without salary") until the funds for the Wall are approved, spoke on TV evoking the risk of "a humanitarian crisis". Immediate, again on TV, the reply of the Democratic speaker Nancy Pelosi.
FLY HONG KONG, SPEE UP CHINESE CAR
Asian stocks are positive, as are the opening forecasts for European stock exchanges and the S&P 500 index.
Tokyo's Nikkei index gains 1,3%, the Shanghai and Shenzhen CSI 300 index 1,6% and the Seoul Kospi 1,7%. Hong Kong's Hang Seng rose by 2,5%, also thanks to the rebound of the companies that produce the components of the iPhone.
The Nikkei Asian Review reported tonight that Apple plans to cut Q10 2019 production of its handsets by about 43%, to about 40-2019 million handsets, about a fifth lower than Q1,91 XNUMX production. XNUMX. Apple stock rose XNUMX% on Wall Street last night.
The shares of Geely (+8,8%), the Chinese auto giant that controls Volvo (and owns a stake in Daimler) are flying. Beijing provides incentives to support four-wheelers after the drop in sales.
The dollar appreciated slightly against the main Asian currencies, but not against the euro (1,145) and the Chinese yuan.
AMAZON IS WORTH 810 BILLION, OIL STILL UP
Also on the rise are the US markets driven by large exporters such as Boeing (+3,8%) and by the race of Amazon (+1,6%), which consolidates its leadership: the e-commerce leader is worth 810 billion dollars .
The Dow Jones finished up 1,09%, S&P 500 +0,97%. The Nasdaq advanced 1,08%.
Brent oil, on the other hand, reached its seventh consecutive day of gains yesterday, this morning it rose by 1,5% to 59,5 dollars.
GERMANY SLOWS DOWN, BUT EUROPEAN EXCHANGES RISE
The hope in a forthcoming agreement between the US and China has also supported the European markets, overshadowing the risk of recession emerging from the data, much more negative than expected, arriving from Germany.
In fact, industrial production in Germany fell by 1,9% on a monthly basis in November (-4,7% year on year), against a forecast of +0,3%. Disappointing indications also came from the confidence index economy in Eurozone countries which stood at 107,3 points in December, the lowest since January 2017.
The index, down for 12 months in a row, is in the worst streak since the 2008 financial crisis.
The negative economic situation had repercussions on the quotations of the euro, which slowed down to 1,144 against the dollar. But even this has served to give oxygen to the stock markets: the slowdown in the Eurozone is an extra weapon in the hands of Mario Draghi to speed up the launch of Tltro loans, so necessary (indeed vital) for the banks.
MILAN +0,25, TOWARDS A NEW 15-YEAR BTP
Milan (+0,25%) closed at 19.000 points, after having reached a maximum of 19.193 points.
The other markets were more brilliant: Paris recovered 1,15%; Madrid +0,87%; London +0,75%; Zurich +0,96%.
Frankfurt +0,49%.
Bond market in tension awaiting the launch of a new 15-year bond, after confirmation of the Treasury's intentions by Reuters.
The 2,99-year BTP rate rose to a maximum of 275%. Similarly, the yield differential between Italy and Germany rose to 272 points from XNUMX just before the news broke.
Italy is not alone: Belgium, Ireland and Portugal yesterday announced the placement of new ten-year bonds.
WEAK BANKS, CARIGE'S FUTURE WEIGHTS
The development of the Carige affair weighed on the banking index (-0,89% against the positive European Stoxx). Following the government's intervention, the market is wondering about the bank's possible future partners. Bper (-2,2%), Ubi (-1,98%), Banco Bpm (-1,85%), Unicredit (-1,64%) also ended up among the worst stocks of the session. On the contrary, Monte Paschi rises (+0,43%): direct intervention by the Treasury is not excluded for Carige, as happened in Siena.
In great evidence Finecobank (+4,2%) after the announcement of the 2018 funding data: 6,222 billion with an increase of 4%.
Azimut (-0,19%) was weak in managed assets: yesterday the company signed an agreement to acquire the entire capital of Rasmala Egypt Asset Management, one of the largest independent operators in Egypt.
GOLDMAN SACHS PUSHES PRYSMIAN
Among the industrial stocks, Prysmian shone (+2,66%) driven by the promotion of Goldman Sachs, which raised the recommendation to buy from hold and the target price from 21 to 22 euro. Stm also rises +0,44%, despite Equita, while confirming the buy opinion, has reduced the price target to 19 euros from 20.
LEONARDO AND FERRARI RUN
Leonardo runs (+1,41%), awarded for the order from the US subsidiary for a supply for the army and the Marine Corps of Trophy systems for the active protection of Abrams tanks and for the reorganization of real estate assets. In great evidence Atlantia (+3,44%) and Amplifon (+5,46%).
The automotive industry rebounds on the wave of the measures being studied in Beijing to boost domestic demand. Brembo (+3,7%) and Pirelli (+2,7%) are up sharply. Ferrari sales (+3,09%) after the news at the top of the team for Formula 1.
BAD ITALGAS, ENEL AT THE HIGHEST SINCE MAY
Counter the utilities. Italgas thud (-1,56%): Kepler Cheuvreux reduced the judgment from buy to hold while keeping the target price at 5,30 euros.
Conversely, Enel (+9,43% to 5,18 euros) rose to price levels it had not seen since last May. Goldman Sachs strengthened the Buy, adjusting the target price to 6,0 euros from the previous 5,90 euros.
Snam also did well (+0,7%): BNP Paribas raised its recommendation to Outperform from Neutral, a new target of 4,40 euros from the previous one which was set at 4,20 euros. Analysts of the leading French bank are once again optimistic after two years of prudence.
THUD OF CUCINELLI, ENERGETIC HEADS TO NEW YORK
Brunello Cucinelli collapses (-11,7%) after the revenue data. Kepler Cheuvreux reduced the target price of the stock from 32 to 30,5 euros, confirming the hold recommendation. Socgen confirmed the sell recommendation and the target price at 22 euros. Mediobanca Securities, on the other hand, confirms a neutral rating.
The driving force of Juventus (+1,2%) confirming the rally favors the other listed stocks: Lazio +2,42%, As Roma +7,69%. Of note is the tear of Ovs (+14,21%).
Energica Motor Company takes off in Aim (+20%). The Modenese manufacturer of high-performance electric motorcycles has signed a new agreement with Hudson Valley Motorcycles for the marketing of vehicles in New York.
