Order reigns in the financial markets after the National Guard, on the orders of Vice President Mike Pence, freed Capitol Hill from thesiege of far-right militants unleashed by Donald Trump against the symbol of American democracy, which caused 4 victims. Indeed, this morning, after the social networks silenced the voice of the almost former president of the United States by blocking his accounts, the stock exchanges focus on the news of the democratic affirmation in Georgia, which handed over control of the Senate to Joe Biden, in pending the completion of the inauguration of the new president.
ASIA ADVANCES, ONLY HONG KONG HOLDS BACK
Open stock markets and Wall Street futures are up. The MSCI Asia Pacific index is up 0,5%, close to an all-time high. Plus signs for Tokyo's Nikkei (+1,5%), Shanghai and Shenzen CSI 300 +1%, Seoul's Kospi +2%, Sydney's S&P ASX200 +1,4%.
The exception is Hong Kong (-0,4%), which is affected by the crackdown on dissent, an issue that promises to worsen under the new US administration. Hong's Hang Seng is down by 0,4%, penalized by the drop by Alibaba and Tencent: an executive order is arriving from the White House banning commercial relations with the two companies.
The decision by the New York Stock Exchange to delist China's three main telephone companies also weighs heavily.
THE TREASURY JUMPS ABOVE 1%. FANGES UNDER FIRE
Expectations of increases in public spending capable of relieving inflation in the United States are driving bonds down: the 1,04-year Treasury Note reaches a yield of 90%, the highest since March. The market rate curve, expressed by the differential between the ten-year and the two-year yield, is increasingly steep: this morning between ten years and two years there are XNUMX basis points, the highest in the last three years.
Contrasted performance for the US lists: Dow Jones (+1,44%), S&P (+0,57%) and Russell 1.000 (the SME list, +2,5%) rise. The Nasdaq holds back (-0,61%).
The big names in technology are losing blows: Apple, Alphabet, Microsoft and, most of all, Facebook are on course.
ELON MUSK NEAR BEZOS PASSING
Only Tesla is up (+2,9%). Elon Musk is close to overtaking Bezos as the world's richest man.
The dollar moved little against the main currencies of the planet, also due to the reassurances on the continuation of the current monetary policy by the Federal Reserve, contained in the minutes of the last board meeting published yesterday.
Brent oil launched towards the highs for the period at 54,7 dollars a barrel, up 0,5%. U.S. crude stockpiles fell about 8 million barrels, much more than expected. Saudi Arabia, after having shouldered most of the production cuts decided by OPEC +, has decided to raise prices to customers in Asia and North America.
Euro dollar at 1,231 from 1,233 at the close.
ITALY TOWARDS AGREEMENT ON THE RECOVERY PLAN
On Facebook, Prime Minister Conte asks for "responsibility" to "strengthen the cohesion and solidity of the government team" and extends his hand to Italia Viva, renewing his willingness to "welcome the good ideas of others". At the heart of the clash between Iv and Conte is the distribution of resources of the Recovery Plan. With the inclusion of funds for the South, the Recovery Plan reaches 218,5 billion.
EUROPE CELEBRATES BEFORE THE “INSURRECTION”
The European Stock Exchanges closed the session before the dramatic news of the invasion of Capitol Hill arrived from Washington. But the session was still dominated by the echo of US politics. In particular, all the lists lengthened their pace, closing at their highest levels since February in the wake of the victory of the Democratic candidates in Georgia.
Piazza Affari rises by 2,4%, to 22.734,32. Frankfurt (+1,87%) and Paris (+1,87%) follow in the Eurozone. The best is Madrid (+3,11%). London explodes (+3,67%), also driven by the weakness of the pound.
After falling to its lowest level since March 2018 at 89,206, the dollar index then recovered to 89,726. The euro/dollar closed at 1,2294. The pound trades at 0,9020 against the single currency.
OIL, VACCINES AND BANKS LEAD THE RALLY
The following contributed to boosting market sentiment: a) the performance of oil companies after the decision on production reached by OPEC+ (in Milan Saipem +5%, Eni +3,28%, Tenaris +5,35%); b) the conditional marketing authorization of the Covid-19 vaccine developed by Moderna, the second one authorized in the EU; c) the trend of the composite PMI index of the Eurozone, which rose to 49,1 points from 45,3 in November, although below the preliminary figure at 49,8 points.
But the stock market reaction also reflects the feeling of revenge of value stocks against growth stocks, so far the undisputed protagonists of the Wall Street rally. Banks, Basic Materials and Energy lead the rise: their respective sector indices rise by more than 4%.
BTPs HOLD UP THE YIELDS OF T NOTES
Bonds also took part in the party at the end, already conditioned at the start by the rise in yields on US treasury notes. At the end of the session, the yield of the BTP stood at 0,57%, while the Bund of the same duration rose to -0,54%, the highest in 5 weeks. The spread closes at 112 points.
The communication of the amount of the annual Bot issue that will be auctioned on January 12 is expected today. During the day, the composition of the demand for the 15-year syndicated BTP placed on Tuesday for 10 billion will be communicated in detail after orders for 105 billion.
Risk appetite weighed on gold: the February 2021 future dropped more than 2% around $1908,50 an ounce.
BUZZI AND CNH LEAD THE "AMERICAN" RISE
The echo of the change of course in the USA was felt in Piazza Affari. Buzzi Unicem, very active in the overseas construction sector, celebrates the prospect of participating in the infrastructure investment program promised by Joe Biden with an increase of 7,96%.
Trucks and construction equipment will also benefit from the interventions of the new US administration. But, according to rumors, the rise of Cnh Industrial (+6,64%) depends on the resumption of talks for the sale of Faw to the Chinese.
GIFTS OF THE BEFANA FOR UNICREDIT AND MONTE PASCHI
The wind blowing off Wall Street also helped the European banking sector. In Italy, the Unicredit-Monte Paschi pairing takes advantage of it, the hottest topic of the moment. The Milanese bank scores an abundant leap of 7% while the market wonders about the "dowry" that the Treasury will allocate to make the marriage with the Tuscan bank possible (+4,1%). The titles highlighted: there is talk of the sale of a package of NPL credits for 14 billion but also of a capital increase of 2,5 billion (already included in the plan presented in December), 2,5 billion in tax credits, plus a another billion. Meanwhile, work is underway to defuse the request for damages, 3,8 billion, presented by the Monte Paschi Foundation.
DEL VECCHIO ADVANCES AGAIN AT MEDIOBANCA, BPM FLYS (+5,7%)
Mediobanca (+3,79%) was in great turmoil after Leonardo Del Vecchio increased his stake in the institution by around 0,9%, reaching 11,92%. Session under the sign of the Bull also for Bper (+4,8%) and Banco Bpm, also possible protagonists of the merger season.
ENEL RISES BEYOND 90 BILLION, HOLDS DOWN THE CAR
Great exploit by Enel (+6%) the Italian giant has exceeded the threshold of a market value exceeding 90 billion euros.
On the other hand, the automotive sector is slowing down. Fiat-Chrysler -2%. Its US new car registrations fell 2020% in the fourth quarter of 8, an improvement from -10% in the third quarter and slightly worse than analysts' expectations, but the product mix is positive, as the most profitable models did well. The retail channel is growing slightly, while the bulk of the decline concerns wholesale (company fleets and other).
The worst stock of the day was Diasorin (-4%).
BOFA MEDIA DE LONGHI, UNIPOL SAI GOES IN IERVOLINO
Among the rising mid caps, De Longhi (+2,21% to 26,78 euros): Bank of America has started hedging with a buy rating and a target price of 32 euros.
On Aim, Iervolino stands out (+4,03%), after Unipol Sai increased its stake in the capital, exceeding the 5% threshold.
