Employment goes up, the economy accelerates. "And get it into your head - spells a manager interviewed by Reuters - that given the situation, the increase in yields on T bonds is good news". Wall Street also thinks so, where the rotation between “value” stocks continues, taking its revenge on “growth”: the American Stock Exchange thus closes higher on the day of the most dreaded auction on Treasuries. And not without reason, given that the offer of the seven-year bonds ended with a half flop: the 62 billion dollars of bonds were issued at a yield of 1,30%, 11 basis points more than the previous one with the same duration. The bid to cover, the indicator of the strength of demand, was below the average of the last similar operations.
THE ASIA PACIFIC INDEX UP 1,1% THIS WEEK
The markets, for now, see the glass as half full. Asia closes the week on positive ground comforted by US data. The MSCI Asia Pacific index gains 1,1%. Tokyo's Nikkei, +1,6% in the final session, is starting to close the week with a 1,3% drop. Hong Kong's Hang Seng, up 1,5% this morning, is down 1,5% for the week. Thanks to +2% today, the CSI 300 of the Shanghai and Shenzen exchanges should close the week with an increase of 1%. The BSE Sensex of Mumbai, +1% at the start of the session, at these levels loses 0,7% compared to five sessions ago.
DOW BEATS NASDAQ AT WALL STREET
The future of Wall Street's S&P500 index is up by 0,3%: yesterday's session closed with a gain of 0,5%; Better the Dow Jones (+0,62%) than the Nasdaq (+0,12%).
Also conditioning the performance of the price lists are the forced sales of shares by passive ETFs, which must rebalance the portfolio (generally 60% bonds, the rest in shares). After the XNUMX-year hike by the end of the quarter, the managers have plenty of bonds to buy and equities to liquidate.
Loses Nike (-3,4%), hit by the boycott of Chinese buyers.
THE MONEY FROM THE TREASURY THIS TIME DOESN'T END UP IN THE STOCK EXCHANGE
The feeling that traders have betrayed the forecasts that assumed a sharp increase in small transactions, thanks to the Treasury's positive check, is confirmed this time. Conversely, the low demand for call options (on the upside) shows that American families are not thinking about the stock market. Airbnb bookings are up, restaurant chain stocks are flying, and above all there is the boom in home purchases. The benchmark future for construction lumber is skyrocketing: it has nearly tripled in the past 12 months.
WTI oil is up 1%, to $59,3 a barrel, as tankers, as well as many cargo ships, are back circling Africa as the Suez Canal is likely to be blocked for several more days . There is a shortage of goods of all kinds to take into account: chips, which are essential for cars, suffer, but also wood pulp for toilet paper, yesterday the subject of a warning from manufacturers.
EUROPE DIVIDED ON VACCINES, BIDEN DOUBLES
The European Vaccine Council did not lead to an agreement on the redistribution of vaccine doses: government positions are still far away and more time will be needed to decide which method to adopt. French President Emmanuel Macron criticizes the EU strategy: "Europe moved like a diesel engine". Mario Draghi is back to talking about Eurobonds.
At the virtual summit Joe Biden also attended, who spoke about the revival of transatlantic relations, the fight against climate change and collaboration on vaccines, but without making specific commitments. The president raised his vaccination goal from 100 to 200 million doses in his first XNUMX days in the White House.
EUROPEAN PRICE LISTS IN PARITY, EUROS AT THE MINIMUM FOR 5 MONTHS
Yesterday the markets, already in the red, recovered in the second half of the afternoon to then close virtually even. But there was a lot of volatility during the day. Piazza Affari, which closed at +0,04%, had managed to lose 1% and gain 0,3%. The recovery came when news arrived from Wall Street that the indices had returned close to parity after a less than exciting start. The euro didn't even think about recovering, finishing below 1.18, on the lows for almost 5 months against the dollar.
ALSO H&M AND ADIDAS IN THE SIGHT OF CHINA
The other price lists also saw little movement: Frankfurt +0,1%; Paris +0,08%; Madrid -0,41%; Amsterdam -0,12%; London -0,54%.
The Swedish H&M (-2,3%) and the German Adidas (-4,3%) accuse heavy reductions in the face of the prospect of a Chinese boycott in retaliation for the statements about the Uyghurs.
Cineworld -11,3%: the most important European cinema network has reported a loss of 3 billion dollars for 2020 and will ask shareholders to approve an increase in the debt ceiling.
DEL VECCHIO THINKS OF MILLERI FOR DELFIN. AND SHOPPING IN THE USA
EssilorLuxottica has signed an agreement to acquire Walman Laboratories in the US, which have a network of 35 sites including laboratories for finishing prescription lenses and vision care products. A change was introduced in the bylaws of Delfin, Leonardo Del Vecchio's safe, which allows the Milanese industrialist to choose a manager from outside the family as his successor. The chances of Francesco Milleri, managing director of EssilorLuxottica, are growing.
THE BTP SHORT DEBUT AT -0,39%. TODAY THE AUCTION BOT
The BTP closed the session with little movement which saw the debut of the "short term" BTP, which replaces the CTZ. In closing, the spread on the Bund on the ten-year segment was set at 97 basis points from 95 on the previous day.
The 0,59-year rate stands at 0,38%, unchanged from the opening and closing of the previous session. The German Bund closes at -2%, minus XNUMX basis points.
The Treasury has placed 4 billion euros in the new 'short' BTP, maturing in November 2022, at a rate of -0,39% compared to the -0,308% of the placement in February for the CTZ in September 2022. The BOT auction is being held today in which via XX Settembre will make available 6 billion in the six-monthly voucher.
OIL AND BUZZI HOLDING BACK THE STOCK MARKET
The worst blue chip on the Piazza Affari list was Buzzi (-4,37%), which accelerated downwards during the session after the release of the 2020 accounts, closed with a group net profit up 45,2% , to 560 million, and with the proposal of a coupon of 25 cents on 2021. What disappointed analysts was the forecast of a probable decrease in the recurring gross operating margin.
Reductions also for oil, driven by the declines in crude oil: Tenaris lost 2,67%, Saipem -1,37%, Eni -1,31%.
ROTATION REWARDS UTILITIES. FLY HERA
Utilities, rewarded by the rotation of investments, instead recorded the most interesting performances. In particular, Hera (+3,4%) was highlighted, after the group's accounts showed a 2,4% growth in revenues, to 7,1 billion euro. Kepler Cheuvreux confirmed the buy recommendation and the target price at 3,6 euros. Analysts cite "good" 2020 accounts and "improved dividend policy". A2a (+1,27%), Terna (+1,11%) and Snam (+0,97%) are growing in the wake.
EXOR -0,87%. FERRARI IS THE ASSET WORTH THE MOST
A loss of 30 million euros conditioned by the negative results of the investee companies Cnh Industrial and Juventus. But also a significant increase in the value of equity investments, which as of December 31, 2020 had risen to 29,5 billion dollars, compared to 26,1 twelve months earlier. Among the investees, Ferrari (8,3 billion) exceeds its share in Partner Re. This is, in summary, the snapshot of the accounts of Exor (-0,87%), which in 2021 will collect dividends of over one billion euros from group companies. The largest share naturally comes from the extraordinary dividend of 827 million euros approved by FCA in the context of the merger with PSA.
STILL SALES ON LEONARDO. BOUNCE STELLANTIS
Rises also for Stellantis (+1,41%) despite the difficulties in the supply of chips. The union anticipates the closure of a line at the Melfi plant. Union coordination of the Italian plants will be held on 15 April in Turin.
Leonardo sales continue (-1,02%), following a heavy crash due to the suspension of the IPO project for the US subsidiary Drs, as the adverse market conditions did not allow for an adequate evaluation.
UNIQUE NETWORK AND HIGHWAYS: THE NARROW IS NEAR
Telecom appreciates by 0,99%. The Minister of Economic Development, Giancarlo Giorgetti, who urged the parties involved in the single network project to clarify "before Easter".
Meanwhile, the Draghi government is thinking of a broadband law. This extraordinary plan of interventions will specify in which areas of the country the optical fiber must be brought and with which cutting-edge technologies; it will indicate 2026 as the deadline for the construction of the infrastructure and, finally, the browsing speeds that families, businesses and public offices will have to find, using the Internet. The realization of these objectives will be entrusted to a new national grid company, not necessarily with a public majority, which will be obliged to respect the roadmap.
ATLANTIA: BENETTON WANTS TO SELL, THE FOREIGN FUNDS DO NOT
Turnaround in sight for Atlantia (-0,41%). A new offer on ASPI should arrive by Saturday from the CDP: according to rumors it could be decidedly higher than the valuation of 9,1 billion made in February. But yesterday the break between Atlantia's shareholders and its managers took place, together with some foreign shareholders, including Tci, which raised 10% of the capital. The Benetton family and the Crt Foundation will present themselves at Monday's meeting voting against an extension of the project to demerge Autostrade from Atlantia and requesting the closure of the negotiation for the sale of Autostrade to the consortium led by Cassa depositi Prestiti.
MOODY'S PROMOTES ITALIAN BANKS
The banks are weak: Banco Bpm (-0,77%) and Bper (-0,75%) are holding back, possible protagonists of a merger. Conversely, Cattolica Assicurazioni rises (+1,73%). Moody's revised its outlook on the Italian banking system upwards to 'stable' from 'negative'. The decision, explains the rating agency, reflects expectations that the Italian economy will return to growth this year after the sharp contraction in 2020 triggered by the coronavirus pandemic.
INVESTINDUSTRIAL LAUNCHES THE TENDER OFFER FOR GUALA
Among the mid caps, money on Guala Closures (+2,55%). GCL Holding Sarl and Peninsula Capital, both shareholders of the company, have signed a shareholders' agreement on 33,09% of the voting rights and 24,08% of the share capital. In the evening, Spsi (controlled by Investindustrial) launched a takeover bid at a price of 8,20 euros: the shares already held plus those subject to commitment already represent 53% of the capital. Gibus shined on Aim (+26,37%). The leader in awnings closed 2020 with a 97% increase in net profit.
