Waiting for communications from ECB, the European markets "console themselves" with the bad indications coming from the data on the manufacturing of the Old Continent: the index of purchasing managers in January fell to 50,7, the lowest level since July 2013, from a final reading in December at 51,1; this is a worse result than even the most pessimistic estimates. The figure authorizes the markets to hope for an expansive push from the Central Bank. The ECB president could anticipate the announcement of the new loan More: the euro trades at 1,136 against the dollar.
The Exchange of Milano it strengthened up by 1,2% above 19.600 points, supported by the rally of Stmicroelectronics (+8,9% to 13,60 euros), which gave a boost to the technology sector. The other European lists also rose: Madrid +0,75%, Frankfurt +0,7%, Paris +0,6%. London is in negative ground (-0,3%).
The race towards euro area government bonds continues: in January 2019, overall demand for government bonds from Italy, Portugal and Spain reached a new record overall (compared to the same month) at 106 billion euro, resulting up about 15% compared to January 2018.
The yield of Btp 10 years drops this morning to 2,71%, spread 250 basis points. Spanish 1,27-year rates trade at 0,23%, the lowest level since July. German Bund XNUMX%.
Il Petroleum Brent crude is trading at $61,11 a barrel, down 0,4%, for the third consecutive day of declines. The prospect of US sanctions on Venezuelan crude oil exports has worn off. Caracas production is at a 70-year low at 1,2 million barrels, half the level of three years ago. At Piazza Affari Saipem -0,4%, Eni +0,2%.
As already noted, Milan was supported by the performance of stm, rallying after presenting a strong outlook on performance in the second half of the year. “Considering the particularities of our company, we are confident that we will have a strong acceleration”, explained the CEO Jean-Marc Chery. The company expects strong demand for its automotive sensors and energy semiconductors that will offset the possible decline in demand for smartphone chips. The fourth quarter of 2018 yes
it closed with an operating income of 443 million euros, up 7,9% year on year, slightly better than expectations (425 million).
Prominent in asset management Azimuth (+4%), strongly accelerating after announcing that fixed commissions, following a change in the calculation method, will increase. Furthermore, the same has submitted to the Luxembourg regulator a new methodology for calculating performance fees based on an "annual benchmark calculation plus a spread linked to the various product categories". On positive ground too General Bank (+ 3%) and FinecoBank (+ 1,6%).
Banks are also recovering with the sector index up by 1,34%. Unicredit + 1,9% Understanding + 1,2%. Mount Paschi jump more than 3%.
Heavy Tod’s, even if it recovered from the lows, with a drop of almost 6,3% after the results of 2018 closed with revenues, at current exchange rates, down by 2,4% to 940,4 million, below analysts' expectations. The cut in the target price by Credit Suisse also weighs heavily, going to 43 euros from the previous 57 euros.
