The ECB's alarm over the "risks of excessive euro strength" did not have the impact that the ECB bankers probably hoped for. A few hours after the publication of the minutes of the last meeting of the Frankfurt bank, the single currency erased the initial losses and recovered the lost ground, climbing back to 1,17305 against the US currency. A showdown of the euro, impervious even to the shock of the Barcelona attack?
If anything, it is more sensible to speak of a dollar in a state of confusion in the face of the serious crisis into which the US administration seems to plunge more every day, hit by the conflict between the two souls of Donald Trump's staff: on the one hand the extremist Steven Bannon, standard bearer of the far right and of economic nationalism, on the other Gary Cohn, head of the economic staff, much softer on protectionism and far from the proclamations of white supremacism. The balance these days seems to lean on Bannon's side, to the point that for a few hours yesterday there was talk of Cohn's imminent resignation.
The news was denied, but that didn't prevent Wall Street from experiencing its worst crash since May. On the currency market, in addition to the rebound of the euro and the yen, it is worth highlighting the impressive march of bitcoin, traded at around $4,500 from around $1.000 at the beginning of the year. The stormy atmosphere explains the caution of Mario Draghi, who has already made it known that in the next meeting in Jackson Hole he will avoid the "hottest" topics but also the doubts of the Fed. To what extent can Washington's political confusion compromise the recovery? Does it make sense to continue with the policy of gradually increasing rates in the absence of clear choices regarding taxation and the federal budget? In short, the end of summer coincides with the start of a season of uncertainty, the situation least appreciated by the markets.
TOKYO -1%, GOLD AND FEAR INDEX RISE
Meteo Borsa records the ongoing tensions on the political and terrorism front. The Japan Stock Exchange is about to close in the red -1%. Down 0,4% Hong Kong. Seoul loses 0,6%. The shares of the PC manufacturer Lenovo fell sharply -4,2% after the results. Mumbai 0,7%. On Wall Street, the S&P 500 index recorded the worst performance in the last three months: -1,54%. Down also Dow Jones -1,24% and Nasdaq -1,94%. The Vix index which measures volatility shot up: +32% to 15,5 points. Gold is up for the second consecutive day at $1.288 an ounce.
EVEN APPLE AGAINST TRUMP. CADE WAL-MART
Tim Cook, CEO of Apple -1,9%, yesterday joined the chorus of protests by the big names in American business who dissociated themselves from Donald Trump after the President's statements that yesterday made matters worse by criticizing the demolition of statues in memory of the Confederates. The company data was also negative: Cisco dropped 4% after the company data. Wal-Mart also hurt -1,6%. The retail giant posted earnings of $2,90 billion, 96 cents a share, down from $3,78 billion, $1,21 a share, in the same period last year.
ALIBABA SHINES: REVENUES +56%
Instead, Alibaba shines +2,77% around 164 dollars, on the all-time highs. The Chinese e-commerce giant's quarterly results are stellar: revenues rose 56% year-on-year to 50,1 billion yuan, or $7,51 billion. Oil closed up 1,5% at 51,1 dollars a barrel, Eni fell -1,3% in Piazza Affari. Saipem -0,4%. The company has been awarded a new contract in the Exploration & Construction segment worth approximately $850 million.
THE NIGHTMARE OF TERROR ON EUROPEAN OPENING
Closing down for the Stock Exchanges of the Old Continent, held back by the warning about the euro in the ECB's minutes and by the inflation trend, still in decline. On the other hand, the echo of the attack in Barcelona, which took place close to the closure, did not weigh. But the events in Catalonia will weigh on this morning's opening. During the night, the terrorists attempted to strike again, again in Catalonia, in Cambrils: six civilians were injured, two of which were very serious. Police killed four suspected terrorists in a firefight, reportedly wearing belts packed with explosives.
In Piazza Affari, the Ftse Mib index dropped 0,89% to 21.789. Frankfurt -0,49%, Paris -0,57% and London -0,61% also fell. At their meeting on July 20, representatives of the European Central Bank's board expressed concern about the possible excessive reaction of the euro, underlining that favorable financing conditions "cannot be taken for granted" and depend on Frankfurt's accommodative monetary policy .
Mario Draghi's message had an immediate effect: the single currency slipped within minutes below 1,17 against the dollar (-0,8%) to its lowest since July 27, only to halve the loss at the end of the session (closing at 1,714 with a drop of 0,4%).
The BTPs archived a modest increase in a session with typically summer volumes in which the minutes of the ECB meeting at the end of July did not give a precise direction. The spread between Italy and Germany is worth 160 basis points, on the previous day's values. the same level as the previous closing. Similarly, the 2,03-year reference rate is trading at 2,04% from XNUMX% on Wednesday.
UNDER PRESSURE BANKING AND MANAGED
The prospect of a postponement of the rate hike in the USA and the lack of tapering in Europe weighed on the banking sector which dropped 1,27%. Unicredit -2,05% and Ubi Banca -2,62% fell sharply. Banco Bpm drops by 1,58% despite the fact that Barclays analysts have raised the target to 4,15 euros from the previous 3,3, confirming the Overweight opinion. Banca Intesa is doing better -0,34%.
The other financials are also bad. In the letter, asset management: Fineco –1,8%, Azimut -1,54%. Insurance companies are down: Generali -0,84%, Ugf -1,04%.
BRAKE THE CAR, CNH DEFENDS ITSELF
The automotive sector is in red. The denials that arrive in dribs and drabs from China, regarding rumors of purchase offers from some brands, have only partially deflated Fiat Chrysler -1,9% and Exor -1,79%. Ferrari -1,06% and Brembo -1,01% also down. On the water line Cnh Industrial -0,15%, favored by the improvement of the target price by JP Morgan.
SALT THE LUXURY. POSITIVE RECORDATI AND MEDIASET
Worth noting again: the utilities lose ground after a brilliant start: Enel -0,6%. The group has entered into a tax equity deal worth approximately $340 million for the 300-megawatt Red Dirt wind farm project in Oklahoma. In the aftermath of the all-time high, Atlantia lost 1,1%. Highlights of luxury: Moncler +1,88%, Tod's +1,6%, Yoox +0,77%. The exception is Salvatore Ferragamo -1,98%. Also up were Recordati +0,77%, Mediaset +0,53% and Campari +0,33%.
