Taurus takes a break after a new stretch. He happens to Milan, which in the afternoon failed to achieve the tenth consecutive hike. It happens on Wall Street, where the Dow Jones index, after exceeding the threshold of 26 points under the impetus of Citi's results, reduced gains to a measly 0,045% (index at 25.813,8 at closing).
GENERAL ELECTRIC (-2,9%) DISMANTS THE CONGLOMERATE
The markets, after the long rally, are waiting for new signals to resume the race. Data expected from China and new positive numbers from corporate timesheets could revive the upside. Meanwhile, the negative notes weigh: the new restructuring plan of General Electric (-2,93%) announced by the CEO John Flannery, intent on dismantling the most powerful conglomerate in the world, and the cautious forecasts of the big car Detroit show, which coincided with the achievements on FCA. The drop in crude oil, after the long race and, above all, the crash of bitcoin, a real bloodbath for speculation, also weighed on the price lists. Everything as per script.
The Asian price lists are weak. Tokyo's Nikkei stock market index is on track to close down 0,5%. The Hong Kong Stock Exchange, which reached its highest level since 2007 yesterday, lost 0,5%. The CSI 300 index of the Shanghai and Shenzhen stock markets decreased by 0,5%. The South Korean Stock Exchange loses 0,4%.
THE DOLLAR STARTS AGAIN, BANNON HEADS FOR RUSSIAGATE
The euro-dollar exchange rate was little moved this morning at 1,225, from 1,226 at the close. The dollar appreciated against the yen to 110,8 from 110,4 on Tuesday, interrupting a phase of devaluation which had lasted for six days. The Bloomberg dollar index, an indicator of the strength of the US currency against the world's major currencies, gained 0,2%, to 90,59.
Last night Wall Street closed down, close to the lows of the session, which began with new records: Dow Jones -0,04%, S&P500 -0,35% and Nasdaq -0,51%.
The slowdown in the afternoon coincided with the news, anticipated by the New York Times, of the summoning of Steve Bannon, Donald Trump's former right-hand man, to the commission of inquiry into alleged interference by Russia in the last presidential election.
In addition, the date for the halt to administrative activity is approaching, in the absence of an agreement in Congress on public spending and debt: the parties have until Friday to avert paralysis. Viacom fell sharply (-7%) after the denial of talks for a merger with CBS. Sale Citigroup (+0,43%) after the accounts, largely influenced by the entry of 22 billion losses related to the new accounting induced by the tax reform.
OIL FALLS BELOW 70 DOLLARS
The price of crude oil slipped below the barrier of 70 dollars a barrel this morning at 69,07, retreating from Monday's highs (70,37). The market, according to operators, is ripe for a momentary slowdown. Saipem -1,11% after hitting new highs since last April at 4,186 euros. The stock is still up 10% year-to-date. Yesterday Abn Amro reaffirmed the Buy judgment and the target price at 5,0 euro. Minus sign also for Tenaris (-2,03%). Flat Eni (-0,07%).
CRYPTOCURRENCIES IN KOREA: -25% IN ONE MORNING
Bitcoin sinks. This morning it is trading at 10.567 dollars, after having lost about 25% of the value in yesterday's session. In December, when it entered the Chicago futures exchange, a maximum had been reached above $20. To accelerate the outbreak of the Stock Exchange, the attitude of China and South Korea, together with Japan the main markets. Central Bank of China Deputy Governor Pan Gongsheng said local authorities should prevent Chinese citizens from using foreign exchanges to trade cryptocurrencies.
Beijing has already banned the sale of electronic money, but in recent months purchases have multiplied in Japan and South Korea. But yesterday the Finance Minister of Seoul, who had so far opposed the closure of the market, changed his mind: "The closure of the exchanges – he said in a radio interview – remains one of the options on the table”. Hence the collapse of purchases and prices. The collapse of Bitcoin has started a domino effect on almost all cryptocurrencies, with rival Ethereum down by 23%, and Ripple even down by -33%. 2017 ended with a boom of around 1.300%, the third consecutive positive year.
BUSINESS PLACE DEFLATES AFTER NINE INCREASES (-0,3%)
The Milan Stock Exchange deflated in the final after reaching new highs since 2015 (at 23.697). Thus the streak of consecutive rises stopped at nine. The index closed by 0,3% to 23.945. The gain since the beginning of 2018 remains around +7%, the best balance in the Eurozone. Today's decline, according to the technical analysis, is completely physiological and does not alter the short-term picture as long as it remains above 23.100/22.00 points.
Frankfurt too (+0,4%) slowed down towards the end. Paris +0,08%, London -0,17%. The best Stock Exchange was Madrid (+0,51%) on the eve of the inauguration of the new Catalan government: Carles Puidgemont, in exile in Brussels to escape arrest, could be re-elected to the presidency and intervene in the debate electronically.
WEIDMANN ATTACKS: THE QE SHOULD BE CLOSED
One week after the ECB board meeting, the pressure on the future of the central bank's purchase program continues. It will be "appropriate" for the bank to end its bond purchase program in September. This was said by the president of the Bundesbank, Jens Weidmann, in an interview with the German newspaper Frankfurter Allgemeine Zeitung.
But speaking to the Boersen Zeitung, Bank of France governor Villeroy de Galhau instead argued that Frankfurt needs to keep an eye on euro exchange rates, due to the downward pressure they put on inflation.
According to Reuters, the ECB is unlikely to abandon its commitment to continue bond purchases as early as next week's monetary policy meeting.
THE BTP 10 BELOW THE 2% THRESHOLD
In this context, at around 17,30, the yield differential between the BTP and the Bund on the 10-year segment settled at 147 basis points, after a plunge to 143,6, the minimum since 13 December. At the same time, the 2-year reference rate fell below the psychological threshold of 1,963%, to 1,5%. While waiting for the substantial medium-long auctions in France and Spain on the agenda for tomorrow, today it will be Germany's turn, which will offer 2048 billion on the 5th anniversary of August 20. Belgium has launched the new XNUMX billion euro ten-year saw orders exceed the XNUMX billion mark.
FCA BRAKS, AN ELECTRIC FERRARI IS COMING
Setback for Fiat Chrysler (-4,15%) affected by profit taking, but the performance since the beginning of the year remains brilliant: +24%. In the press conference in Detroit, the managing director Sergio Marchionne reduced the speculative expectations of imminent extraordinary transactions, such as the spin-off of the components and the separation of Jeep. However, the manager reiterated that the group could double its profits within five years.
Better Ferrari (+0,26%). In Detroit Marchionne revealed that there will be room in the Ferrari business plan for an electric supercar. The CEO confirmed that Maranello will produce an SUV by 2020. Exor (-1,22%) and CNH Industrial (-0,08%) are down. Brembo also down in the automotive sector (-0,37%).
ATLANTIA SHINES, THE UTILITIES START AGAIN
Traders believe that the continuation of the rally is pushing money into stocks that have been overlooked in recent weeks. These include Atlantia (+2,82%), Terna (+0,49%) and Prysmian (+0,69%).
Utilities are also doing well, the sector most sacrificed by the rise, also thanks to the feeling that the ECB does not intend to abandon its commitment to continue bond purchases. A2A rose by 1,43%, Enel by 1,32% and Italgas by 1,19%.
S&P PROMOTES (WITH RESERVE) ITALIAN BANKS
Index of Italian banks down (-0,76%) after the long race. Unicredit loses hits (-2%), Intesa defends itself (+0,2%), on the maximum values. Positive Banco Bpm (+0,21%): the institution has launched a seven-year covered bond of 750 million euro, the second issue since the birth of the new banking group a year ago, after the 2 million Tier500 placed last September. Outside the main basket, Carige continues to rise: +3,41%: Fitch confirmed the issuer rating at 'B-', removing the negative watch rating on the stock. The outlook is negative.
Italian banks will record an improvement in operating performance in 2018 but their exposure to non-performing loans and structural weakness prevent them from generating satisfactory returns. According to a report by Standard & Poor's (title "Italian banks will continue to heal in 2018"), Italian institutions "appear healthier today than they have been in the last five years" but "the prognosis is not entirely clear". For the US agency, small and medium-sized banks remain the most exposed to sudden changes in economic conditions or in market confidence that could emerge if the new government that will emerge from the general elections in March takes a step back on reforms and the consolidation of public finances, concludes S&P.
Insurance rediscovered: Generali +1,02%. Ubs raised its target price from 16,5 to 17 euros (buy). Ugf +0,55% and UnipolSai +0,39%.
TECHNOGYM AT THE KOREAN OLYMPICS
On parity YNap (-0,07%) following the publication of the preliminary 2017 revenues which were substantially in line with analysts' expectations.
Technogym +2,5%. The company will be the official supplier of the PyeongChang 2018 Olympic Games, equipping thirteen training centers. ur
Amber, which has recently risen to 10,47% of Caltagirone Editore (+3,05%) does not exclude the possibility of increasing its stake in the company, but underlines that it does not want to acquire control.
Gamenet leap forward (+8,48%). Banca Akros has started hedging with a buy rating, as has Kepler Cheuvreux. Credit Suisse started tracking the stock with an outperform recommendation and a target price of €10,8.
