Donald Trump, this time, enjoyed slowing down the march of the Bull. The US president, yesterday in Iowa for the start of the electoral campaign, returned to the theme of duties: the negotiations on duties, he said, will close when China returns to sharing the draft agreement on which the parties had initially worked; if, on the other hand, Beijing does not accept the return on the agreed terms, there will be no deal. However, this warning seems to be directed more against the Fed, the object of new, violent criticism, than against Xi Jingping. The president's words were enough to halt Wall Street's advance after five consecutive days of increases. The Chinese market is also slowing down but, more than Trump's words, in this case the protests that the TVs broadcast (but not in China) from Hong Kong are weighing down, where the dispute against the law that will allow the extraction of dissidents from the former British colony.
HOLD DOWN THE RENMIMBI. BEIJING QUOTES THE TOBACCO MONOPOLY
The markets look set for a cautious start.
The Hong Kong Stock Exchange, surrounded by protesters, dropped 1,5%. In contrast, the shares of the Chinese tobacco monopoly, which today make their debut with a 10% increase.
The Csi 300 index of Shanghai and Shenzhen -0,8% were also in the red. Weak Tokyo (-0,2%) and Sydney.
The renmimbi moved little this morning, after yesterday's strong appreciation. China's central bank has sent a warning to those who in recent weeks have bet on a weakening of the yuan, with the narrowing of the margin of fluctuation of the exchange rate and with the announcement of a placement of bonds. Subsequently, the announcement of economic stimulus measures came from the Beijing authorities, in the form of facilitations for the financial operations of peripheral entities.
The 2,13-year Treasury Note, the benchmark US bond, trades at XNUMX%. Yesterday afternoon, Trump again called on the Fed to cut rates and weaken the dollar,
Brent oil loses 1,5% to 61,4 dollars. The data on US inventories arrives today: an increase of five million barrels is expected.
WALL STREET SQUARE, US OIL STOCKS TODAY
The US lists closed flat: Dow Jones -0,05%, S&P 500 -0,03%. NASDAQ -0,01%.
Worth noting is the outcry of the antitrust against the T Mobile-Sprint merger.
Symantec loses hits (-4,5%) after Morgan Stanley lowered the recommendation to underweight from equal-weight.
In the spotlight Broadcom (+1%). The semiconductor company yesterday evening announced the entry into force of a two-year agreement with Apple +1,1%, for the supply of some radio-frequency components for mobile phones.
BUSINESS PLACE RESISTS THE EU PROCEDURE
The euro rose slightly to 1,133 against the dollar. Spotlight today on Mario Draghi's speech in Frankfurt.
And four. Although the infringement procedure against Italy continues, Piazza Affari closed higher for the fourth day in a row, in line with the other stock exchanges on the Old Continent. The markets are convinced that the ECB, in line with the forthcoming indications coming from the Fed, will interpret the mandate on Tltro loans in a "soft" way. Not even the ax from Brussels on the maneuver worries too much: the markets, for now, accept the prudent declarations coming from Prime Minister Giuseppe Conte and Minister Giovanni Tria. But the numbers presented by the Economy Minister, which show that the deficit/GDP ratio at the end of the year will be 2,2% and not 2,5%, have not convinced the partners. For the outgoing president of the European Commission, Jean-Claude Juncker, Italy is moving in the wrong direction. “I think Italy runs the risk of being in excessive deficit procedure in the next few years,” Juncker said.
Today the Financial Times publishes a speech by Marcello Minella of Consob which notes the sharp increase in CDS linked to the increase in Italexit risk.
THE SPREAD DOWN TO 252, A 20-YEAR STOCK AT THE START
Milan closed the session with a gain of 0,61% at 20.609. Since the beginning of the month, Piazza Affari has risen by 4,2%.
The other price lists are positive. Frankfurt (+0,93%) and Zurich (+0,78%) lead the way, closed on Mondays.
The Paris (+0,48%) and London (+0,29%) stock exchanges are more cautious. Slight decrease in Madrid (-0,15%).
On the eve of the mid-month auctions, Italian paper closed in positive territory with the Italy-Germany spread hitting a new low since early May at 255 points after a dip to 252.
The 2,30-year yield falls to a minimum of 6,5% in the last twelve months. Today the Treasury is making 12 billion euro available to investors in 15-month BOTs. Tomorrow it will be the turn of medium-long term securities. Much anticipation for the XNUMX-year bond, a thermometer of the country's credibility on the part of investors.
The Treasury is convinced of the appeal of our securities. Yesterday the MEF gave a mandate to a pool of banks to proceed with the issue of a new twenty-year BTP through a syndicate. Morgan Stanley, MPS Capital Services, NatWest Markets, Nomura and Société Générale have been appointed as lead managers.
STM AND MANAGED ON SCUDI, INWIT AT THE HIGHEST
The best blue chip of the day was Stm (+2,35%) which takes advantage of the improvement in the climate on duties. Prysmian also did well (+1,5%). Tim's march continues (+0,4%).
In the spotlight is Inwit, a company that operates in the electronic telecommunications infrastructure sector. The share moved up by more than one point and reached 8,335 euros, a new historic record pending an agreement by the summer between Vodafone and Tim for the sharing of the 5G towers which should arrive by the summer. Yesterday Deutsche Bank raised its target price to 9,90 euros from the previous 8,30 euros.
The asset management companies were in great evidence: Banca Generali advanced by 2,24% ahead of Azimut +1,1% which consolidated the gains of the previous day also thanks to positive inflows in May in the order of 164 million. That is almost 2 billion since the beginning of the year.
The banks were positive: Unicredit +0,2%, Banco Bpm +0,5%, Bper Banca +0,7%.
MERA JERSEY FOR DIASORIN, THE ITALGAS PLAN HAS ARRIVED
Black shirt for Diasorin: -3,4%, from the highs reached on Monday. The Board yesterday examined and approved the business plan for the four-year period 2019-2022: the main growth drivers of the group, it was said, will be innovation and the development of specialty tests in the immunodiagnostics and molecular diagnostics sectors. Banca Akros confirmed its accumulated opinion on the stock, placing the target price under review
Today it will be the turn of Italgas (-0,14%) to present the new strategic plan
The maneuvers around the Nissan-Renault-Fca triangle continue (+1,2%). In an interview with the Financial Times, the CEO of Nissan Hirotho Saikawa wishes peace with his French partner. In turn, the Paris transport minister hopes for a resumption of dialogue with the Italian-American company. But on the eve of today's Renault assembly the distances remain considerable. Meanwhile Ferrari (+1,9%) sets new records. Cnh Industrial does even better (+2,7%). Pirelli +1,2%.
Also noteworthy is Banca Akros' recommendation on doBank (+1,5% to 10,86 euros) from accumulated to buy, with the target price confirmed at 13,9 euros.
