Maxi rebound on the European stock exchanges after the intervention of the Chinese authorities and the push coming from the German Ifo index. In Milan, the Ftse Mib closed in a rally of 5,86% with the spread decreasing to 123 basis points, Paris +4,41%, London +3,39% and Frankfurt +5,32%. Athens also rebounds +9,38% after the Greek stock market dropped more than 10% yesterday.
The backlash of the markets in the aftermath of "Black Monday" came after the Chinese Central Bank decided to cut the reference rates by 0,25 basis points as regards the interest rate on loans and that on deposits. In addition, the reserve requirement ceiling imposed on banks was lowered by half a percentage point, now at 18% for the major institutions, and a new liquidity injection of 150 billion yuan ($23,4 billion) was carried out. A Chinese Qe that seems to have trusted the markets. However, to understand if the Chinese authorities have succeeded in curbing the Asian avalanche (this morning the Shanghai index lost another 7,6%) we will have to wait for the reopening of the Chinese lists tonight, given that the intervention of the authorities occurred at closed local stock exchanges.
The German Ifo index on business confidence for the month of August also reinforced the increases, surprisingly rising to 108,3 points, from 108 in July, while analysts expected a decline to 107,5 points.
Wall Street was also positive, running with increases of around 2% for the Dow Jones and the S&P500. The Nasdaq is doing even better, rising by more than 3%. On the other hand, while analysts and economists are wondering about the depth of the Chinese crisis (correction or trend reversal?) and try to understand its impact on the global economy, there are those who still see a pink trend in the East. Boeing, for example, has raised estimates of jet demand expected in China over the next 20 years. Declaring itself optimistic on the outlook for the second largest aviation market in the world, the American aerospace giant expects the sector in Beijing to need 6.330 aircraft in the period: +5% compared to the twenty-year target provided last year.
On the macroeconomic front in the US, the August consumer confidence index rose to 101,5 points above expectations of 93,8. Conversely, July new home sales were disappointing, as they rose 5,4% to 507 million units versus market expectations of 510 units.
Oil is also picking up again with the WTI rising by 3,27% to 39,49 dollars a barrel. The euro-dollar exchange rate dropped 1,79% to 1,1411. In Piazza Affari, no Ftse Mib stock closes in negative territory. Above all, the banks run on the main basket: Bper +9,46%, Intesa +8,22%, Banco Popolare +7,27%, Unicredit +6,89%. Stm also stands out +7,29%.
Luxottica's luxury also rebounded +6,56% after the company reassured the business's low exposure: China and Hong Kong account for about 2% of total revenues, while the People's Republic accounts for 40% of production (and the 6% of costs). Safilo +5,84%, Moncler +5,73%, Ferragamo +5,21%, Tod's +2,43%.
