The first crisis of the Biden presidency comes from foreign policy, the sector in which he boasts the greatest competence. But the financial markets don't seem to pay too much attention to the disastrous retreat from Kabul for now: oil continues its descent, even if OPEC+ has not complied with US requests to increase supplies; the bond markets do not betray particular tensions, starting with Treasuries. Understandably, only the emissions of Pakistan and Afghanistan's other neighbors lose ground. And Wall Street opens the week with two new all-time highs by S&P and Dow Jones. Opposite script in the Chinese market, weak despite the possible strategic advantages of the new situation for Beijing. For now, in short, the markets seem to ignore the new geopolitical scenario: it weighs more in the USA waiting for the soft tapering (Eric Rosengren of the Boston Fed says it is imminent, if the recovery in the labor market continues). And the crackdown on tech continues in China.
The CSI 300 index of the Shanghai and Shenzen stock exchanges lost 0,4%. The drop in Hong Kong was heavier. The prices of Chinese companies in the Internet Economy are down again today: Tencent -3,5% is the fifth consecutive day of decline. Alibaba -2,8%, Baidu -4%. The Hang Seng Technology index marks a decline of almost 2%, the Hang Seng of 0,7%. The crackdown by the authorities continues. During the night, the Beijing antitrust released the consultation draft of the document that introduces new systems to protect competition on the Web. the newspapers are multiplying criticism of video games, accused of providing a "distorted view" of Chinese history.
Thus the relations between Wall Street and the champions of the New Economy of the East are loosened. Yesterday evening, the Securities and Exchange Commission published a note discussing the risks associated with investing in Chinese companies listed on US stock exchanges. The president of the Consob of the United States, Gary Gensler, pressed his hand on the subject, intervening directly with a video message in which he anticipates a suspension of the IPOs of Chinese companies on Wall Street. Down the other bags. The Seoul Kospi loses 0,7%, the Mumbai stock market on parity. The worst stock exchange in the Asia Pacific area is that of Australia (S&P ASX200 -1,1%), one of the countries most affected by the most contagious variant of the virus.
The S&P 500 index future is down 0,2% this morning. The Dow finished up 0,31% yesterday evening, recovering after a negative start. Record also for the S&P +0,26% The Nasdaq more than halved its initial loss but closed with a minus sign ahead (-0,2%). The Standard's & Poor's index has gained 100% since March 2020, the nadir of the crisis. In sharp decline Tesla -4,3%: the federal authorities have opened an investigation into the functioning of the autonomous driving system of the company's cars after the many accidents. Moderna -8%, is the worst stock in the S&P500.
Macro variables:
- WTI oil moved little at 67,3 dollars, -1,7% yesterday.
- Gold at $1,786 an ounce.
- Ten-Year Treasury Notes hit 1,25%, up from 1,27% yesterday.
- Euro dollar down to 1,177.
CHINA, KABUL, COVID: TRIS IS ALSO BREAKING EUROPE
The slowdown in the Chinese economy followed in the US by the decline in the Empire Building index offered European markets the opportunity to monetize part of last week's gains while awaiting enlightenment from the Federal Reserve: President Jerome Powell will speak today, tomorrow it will be the turn of the minutes of the last meeting of the bank. Meanwhile, the rumors of the Wall Street Journal are being evaluated on the Federal Reserve's willingness to begin reducing monetary stimuli around November, so as to reach zero by mid-2022. But more than American monetary policy, the reduction in material purchases counts primes from China which had an immediate echo on the metals sector and on oil. All in a climate of widespread uncertainty: the day's macroeconomic data demonstrate how significant the effects of the new course of the pandemic can be, both in China and in the United States.
MILNO HOLDS DOWN -0,78%, DEBT NO
After eight rising sessions, Piazza Affari dropped by 0,76% and fell to 26.448 points, still on record levels since 2008. Meanwhile, the ECB's purchases under the Pepp program are accelerating: 22,784 billion in the week against 21,588. Public debt hits a new record in June, reaching 2.696,2 billion after an increase of approximately 9,2 billion. In the rest of Europe, the worst place is London -0,88%, penalized by sales on energy and mining. Madrid -0,63%; Amsterdam -0,65%.
LUXURY PAYS FOR CHINA'S HOLDING BACK
Paris drops 0,83% as luxury is shaken by Chinese data; Kering drops 4%, Lvmh 2,10%. and the hard luxury giant Richemont.
TOWARDS THE SALE OF A SHARE IN LUFTHANSA
Frankfurt -0,43%; Germany plans to sell up to a quarter of its 20% stake in Lufthansa in the coming weeks, the German financial agency announced, citing positive developments for the airline bailed out of state intervention in 2020. Lufthansa shares are it fell by 4,9%, to 8,81 euros in the wake of the news.
FAURECIA (HOLDING BY EXOR) +12% AFTER THE PURCHASE OF HELLA
Faurecia, the public company created at the birth of Stellantis, rose 12% in Paris, following the acquisition of a majority stake in the German automotive lighting group Hella, beating the offers of rivals with a proposal from 6,7 .3,4 billion euros. Hella shares, which hit record highs last week, are down 60%. The Hella family, which had 9% of the capital, is paid in cash and shares which will give them XNUMX% of the French company. The operation allows Faurecia not only to rise to fifth place among suppliers of auto components but above all to move the core business towards electric cars.
BTP, STABLE YIELDS AND SPREADS
Italian bonds recovered somewhat in the afternoon but maintained a negative tone, in an asphyxiated market, thanks to the mid-August period. The 0,56-year rate closes at 0,55% from 104% at the opening and last closing. The gap between Btp and Bund yields stands at 103 basis points, from XNUMX at the end of Friday's session.
PHARMA AND UTILITY ARE SAVED
In Piazza Affari, only the securities of the health sector and some utilities were saved. Purchases in particular on Italgas +0,85%, Diasorin +0,7%), Amplifon +0,49%, Recordati +0,56%) and Hera +0,35%. Outside of these two categories, only Azimuth +0,43% is good. Energy slows down: Saipem -2,37%; Tenaris -2,25%; Eni -1,39%. Buzzi also decreased -1,79%.
BREMBO HIRES IN SILICON VALLEY
The automotive industry does not gain share after the Faurecia blitz: Cnh -1,87%; Stellantis -1,44%, Exor loses 0,92%. Sale Brembo +0,32% finished under the scrutiny of Intesa Sanpaolo analysts with add rating and target price of 13,5 euro: With the group's Inspiration Lab in California, the recruitment of its first 15 researchers has kicked off. For analysts, the company's commitment to the Inspiration Lab is "fully consistent with the process of becoming a solution provider." According to the experts, through the new Lab, the group will also develop further skills in the field of artificial intelligence. Then the luxury sector did badly, affected by the performance of the Chinese economy which was less than expected: above all, Moncler lost 1,97%.
POSTE ITALIANE, FOR EQUITY IT IS THE TOP
Contains the damage Poste Italiane -0,81%: Equita presented the stock as investment case of the week. In addition to the robust half-year results, the opinion was influenced by "the high growth potential in the insurance, payments & mobile businesses, while the traditional Post Office business is characterized by a balanced mix of volumes between letters (down) and parcels (up )".
ORCEL HIRES FORMER MPS CHIEF OF PERSONNEL
Banks starting from Banco Bpm -1,61% are in the red. Unicredit also lost 1,3%, although Morgan Stanley raised the target price of the stock to 13 from 12,5 euros. Andrea Orcel, pending the due diligence on Mps, moved forward by hiring Ilaria Dalla Riva, as head of "People & Culture" Italy. The professional, highly appreciated in the sector, has been the human resources director of Vodafone Italia since 2019. But she was previously head of personnel at Monte Paschi since 2012. Mediobanca goes against the trend + 0,22%. The rise of Ulisse BioMed +6% continues in Aim.
