Hong Kong protest turns blood red. Yesterday, in the most dramatic day, there was at least one dead in the former colony in revolt: communications between the various districts of the metropolis are difficult because everywhere there are pickets of demonstrators blocking the streets. In this extreme situation yesterday the Stock Exchange fell by 2,6%. The situation this morning is apparently calmer. But the palpable tension weighs on the mood of Chinese price lists (Shanghai -0,3%) at the start of a day that could be very important for the future of trade. In fact, tonight, Donald Trump will give a long-awaited speech at the New York Economic Club on the subject of duties, not only with China: tomorrow the extension on the investigations relating to European cars expires. Anti-EU sanctions are likely to be avoided, but with Trump you never know.
Signs of recovery this morning on most Asian stock exchanges: the Korean Kospi gains 0,3%, the Tokyo Nikkei 0,4%. The Singapore Stock Exchange also rose, +0,3%.
New record for Alibaba: on "Single's Day", the day of discounts on Chinese e-commerce, purchases exceeded 38,3 billion dollars.
The dollar-yuan exchange rate fell by 0,1%, even if it remained above the psychological threshold of 7. The yield on Japan's 0,05-year bond reached new highs for the period at -3% (+XNUMX basis points).
The vacation of the US bond markets, closed yesterday for Veteran's Day, favored the recovery of risk appetite. The dollar-yuan exchange rate fell by 0,1%, even if it remained above the psychological threshold of 7. The yield on Japan's 0,05-year bond reached new highs for the period at -3% (+XNUMX basis points).
Gold is barely moved at $1.455 after three consecutive days of decline.
Almost flat calm on Wall Street in a session with holiday tones: Dow Jones +0,04%, S&P -0,07, Nasdaq -0,13%.
Of note is the rally by Boeing (+4,5%): in January the 737 Maxi will be able to fly again.
A maxi offer of Kkr is arriving on the Walgreen pharmacy giant which could thus exit Wall Street.
Brent oil moved little this morning, at 62,4 dollars a barrel, +0,3%.
WEAK EXCHANGES IN EUROPE. ITALY, REVIEW THE PIRs
Troubled start to the week for the markets of the Old Continent, grappling with the post (see Spain) or pre-election (United Kingdom) tensions, but also with the renewed fibrillation on the debt market which, on a calm day due to the market holiday of the US T bonds, he sees Italy once again at the forefront. In this context, the executive is aiming for private savings. The majority aims to review the current legislation that has scuttled the PIRs. The proposal to strengthen savings plans by doubling the investment limits, which would go from 24 to 30 euros within the maximum limit of 60 compared to the 300 euros set by the 150 maneuver, is being studied, reports Il Sole 2017 Ore.
THE INDUSTRY HOLDS BACK, THE ILVA EFFECT WEIGHTS
In this context, after five weeks of bullishness, Piazza Affari (-0,19%) closed in pale red at 23.489,93.
New decline in industrial production in September. In September it marks a -0,4% month on month and a -2,1% year on year. The trend shows a decrease for the seventh consecutive month. Analysts' expectations for -0,6% on the month and -2,1% on the year.
The Ilva crisis is not resolved. Giuseppe Conte should shortly review the top management of ArcelorMittal to seek a solution to a game that seems compromised in extremis. The government, said the premier, could evaluate a new form of penal shield if Mittal "changed his mind and came to tell us that he will respect the commitments made in the contract, i.e. production within the set terms, full employment and purchase of the former Ilva in 2021" . But "the problem - underlines the premier - is an industrial one, not a judicial one". Economy Minister Roberto Gualtieri branded the hypothesis of nationalization as a "dangerous illusion".
CITY IN RED, STERLING AT THE HIGHEST SINCE MAY
Frankfurt is also in negative ground (-0,23%). Holds Paris (+0,07%).
Madrid -0,06%: after a morning of sharp declines, limits the damage in closing. No bloc has obtained a majority to govern.
Largest losses for London (-0,42%), weighed down by stocks that have strong exposure to Hong Kong, such as fashion house Burberry (-3%) and Prudential insurance (-2,3%).
On the other hand, the pound strengthened, +0,5% against the euro, to its highest level since last May after Nigel Farage, the leader of the Brexit party, declared that his candidates would present themselves only in constituencies where the Labor party is more strong with the intention of not competing with Boris Johnson.
Good news for British steel. Chinese steelmaker Jingye Group has announced a preliminary agreement to acquire British Steel, promising to invest £1,2 billion over the next ten years.
BTPs UNDER FIRE, SPREADS ABOVE 150
Yields of BTPs and spreads are on the rise in a high-voltage session awaiting the reopening of the US desks today. The 5-year yield rose 1,25 basis points to XNUMX%, its highest level in two and a half months.
The spread reaches 150 basis points for the first time since September.
The German Bund is stable at -0,26%. The Spain/Germany spread on the 67-year segment reached XNUMX basis points, the highest since mid-October.
MEDIOBANCA: DEL VECCHIO IS AT 9,889%: TODAY THE FLOOR
On the eve of the presentation of Mediobanca's business plans, unchanged at 10,44 euros, Leonardo Del Vecchio sends a new signal on his intentions to grow in Piazzetta Cuccia. Mister Luxottica last November 6th bought other shares of Piazzetta Cuccia reaching 9,889%. All while waiting to know the outcome of the dialogue with the ECB to rise up to 20%. This is what emerges from the updates of the relevant shareholdings released by Consob: the total investment, for now, is around one billion euros.
Unicredit (-0,9%) closed above the lows reached in the middle of the session, but the correction continues after last week's increase before and after the results. HSBC revised the target upwards to 14,8 euros.
NORGES BANK BETTS ON CATTOLICA
Volatile trend for the rest of the sector: Ubi Banca -1,8%, after the results announced on Friday. Deutsche Bank cut its target to 2,4 euros.
On the contrary, Bper Banca did well (+1,66%): HSBC raised the target price to 4,85 euros. Understanding +0,66%.
The most tonic sector in Piazza Affari was that of asset management. Leading the race are Banca Mediolanum and Anima, both +3%. Followed by Azimut (+1,7%) and Fineco (+1,4%).
Cattolica Insurance -0,13%. Norges Bank, one of the most important institutional investors in the world, exceeded the 3% threshold, increasing its stake to 3,058% of the capital.
AUSTRALIA MAKES SALINI FLY
Salini has taken off (+5,23%): the company has announced that it is in the shortlist to be awarded the construction of the Sydney Gateway project; the overall value of the project to improve road links from the airport and Port Botany to Sydney's new motorway junction at St Peters Interchange is approximately €1,5 billion.
Weak luxury, on the wave of fears for demand from Asia. Moncler -1,3%, Salvatore Ferragamo -0,1%, Tod's -0,7%: they could be penalized by the stop of commercial activities in Hong Kong.
FINCANTIERI SINK, PRYSMIAN AND TIM DOWN
Among the negative notes, the decline of Fincantieri stands out (-4%). The company continues to collaborate with the European Commission to obtain the go-ahead for the acquisition of Chantiers de l'Atlantique and believes the operation to be a "valid" industrial project, the failure to implement which would put jobs in the sector at risk. The president of Fincantieri Giampiero Massolo told Reuters on the sidelines of an event in Milan.
On the eve of the results, Prysmian is leaving more than 2% on the ground.
Tim -2%. Some US funds would not be in favor of the merger with Open Fiber as the operation could be blocked by the Antitrust.
FALCK SUPERSTAR: +105% IN ONE YEAR
Falck Renewables rose sharply in the second session, +8,13% after stronger-than-expected results. Equita has revised the estimates upwards and brought the valuation to 3,95 euros. Today, the stock closed at 4,6 euros, a new high since 2008. In the last 12 months, the quotation has grown by 105%.
Zignago Vetro also rose (+7,24%) after the results and the promotion of Equita to 'buy', target 12,6 euros.
