A few hours after the announcement of the Fed's decisions, stock markets rose in every corner of the planet, in line with the rally in European stock markets. All Asian stocks show increases of more than 2%: the Topix index in Tokyo +2,2%, Hong Kong +2,1%, Sydney +2%. The exception is Shanghai (+0,4%), however in positive territory.
On Wall Street, the S&P 500 index closed up 1,1%, driven by the rebound in the energy sector (+2,9%) and by the banking sector, stimulated by the prospect of rate hikes. The Dow Jones (+0,9%) and the Nasdaq (+0,87%) also rose.
The reaction of all the European stock exchanges was even more robust with increases of more than 3% which made it possible to reduce the losses (-10%) suffered since the end of November. The Eurostoxx index marks a rise of 3,3%.
In Milan, the FtseMib index gained 3,7%, while the Paris Stock Exchange rose by 3,1%, London +2,5%, Frankfurt +3,1%. The liveliest sectors were oil (+3,9%) and banks (+3,6%).
OIL BOUNCES, BTP INCOME RISES
The recovery in oil prices on the US market fueled the rebound: Brent +1,4%, American WTI +3%. This morning in Asia crude oil prices weakened again. Exxon shares fly (+4,5%). In Piazza Affari Eni rose by 4%, Tenaris +3,2%, Saipem +3,5%. Among the utilities, Enel gains 3,9%.
The bond market is tense. The Italian 1,713-year yield went up to 3%, a level not even touched on December 102, the day of the disappointment caused among operators by the words of the ECB president Mario Draghi. The spread between the Btp and the Bund was little moved, at XNUMX basis points.
The market has thus sent a clear signal that it has more than digested the rise in US interest rates that everyone expects. It will be the first hike in US interest rates since 2006, a move that ends nine years of zero rates. The latest confirmation came from the “core” inflation data (excluding oil and food) which rose to 2% in November. The forecast by economists is for an increase in the rate on the Fed Funds from the current zero per cent to 0,25%.
BOLLORE' BEATS THE FUNDS 2-0
Telecom Italia rose by 5,6% with ordinary shares and 3,8% with savings shares on the day of the shareholders' meeting which, shortly before the close of the market, decreed the double victory of Vivendi. As expected, the French shareholder blocked the conversion of savings shares and managed to appoint four representatives to the board of directors, putting at least part of the current Board of Directors in check.
The resolutions for the enlargement of the board passed with favorable votes equal to 52,9% of the capital present: almost 9% of the capital sided with Vivendi, which on the eve had rounded up the share to around 20,5%. However, the decision is weakened by the failure to release the non-competition obligation, requested by the French group.
Today, with the presence of Vivendi's directors, the Board of Directors meets to work on the guidelines of the industrial plan, which should be presented in the spring. The company has lost the characteristics of a public company but the president Giuseppe Recchi assures: "This board will remain in office until the end of the mandate because there are no different forecasts".
POPULAR BUILDING, M&A CLOSER
In Milan, the strongest increases concerned the banking sector, with Popolari in the lead: the crisis that emerged from the Salva-Banche and Pop's problems. Vicenza and Veneto Banca could speed up the M&A process in the sector.
Pop.Emilia runs the most (+6,7%). The CEO of the Modenese bank, Alessandro Vandelli, said that the impact of a possible ban on placing subordinated bonds with retail customers on the banks' overall cost of funding would be limited, given that the yields offered on the retail market and those on the institutions have essentially aligned. In the meantime, Exane Bnp Paribas raised the target price to 8,90 euros from 8,40 euros, confirming the Outperform recommendation.
Pop.Milano (+5,8%) and Banco Popolare (+6,7%) also stood out. Among the main banks, Unicredit rose by 4,9%, Intesa +4,5%. Monte Paschi rebounds from the lows (+6,3%).
Asset management was also very positive: Anima advanced by 5,1%, Azimut +3,8%. More modest recoveries for insurance companies: Generali 2,4%, UnipolSai +3,1%.
EUROPEAN SALES GIVE THE CHARGE TO FCA
Fiat Chrysler's revenge (+4,3%) after the previous day's crash (-5%). They are positive sales data in Europe in November, up 18,3% for the Italian home, stronger than the market which grew by 13,7% overall.
Off the main list Pininfarina has not yet managed to make a price in the aftermath of the agreement for the purchase of 76% of the company by Mahindra & Mahindra. The stock marks an indicative price of 1,95 euros after yesterday's collapse to 1,31 euros. Among other industrialists, StM +4,3%, Finmeccanica rises by 2,8%.
LUXOTTICA LEADER, PRADA CONTAINS THE DESCENT
In luxury, the best stock is Luxottica (+3,8%). Prada's accounts have been the driving force behind the sector's stocks. The Hong Kong-listed Italian company reported a 26,4% drop in profit to 235 million euros, still less than market fears. Revenues rose by 1,5% to 2,58 billion euros (negative change of 7% at constant exchange rates). Ferragamo +2,7%.
