The European stock exchanges regain momentum and close the first session of 2020 with a sharp rise, driven by optimism about tariffs and by the new measures to support the economy decided by the Chinese central bank. In the afternoon it helps to incite the Bull to open on Wall Street's record levels.
Piazza Affari rises by 1,4% (23.836 basis points), ahead of Frankfurt +1,02%, Paris +1,06%, London +0,79%, behind only Madrid, +1,46%. Airbus shines (+2,33% in Paris) following the news of overtaking on Boeing (+1,65%): The European consortium became the first aircraft manufacturer in the world by delivering 863 aircraft in 2019 and exceeding expectations.
New York shines, with chiaroscuro macro data, but full of confidence in the phase one trade deal between Washington and Beijing, after Donald Trump announced the signing for January 15th. The technology sector, at the moment, records the best performance: Apple +1,45%.
China contributes to the overall positive sentiment after yesterday the central bank announced that it will cut the banks' reserve requirement ratio, eighth cut since the beginning of 2018, giving new stimulus to the economy and at the same time strengthening global markets.
The dollar recovers, after a phase of correction and in a thin market, which relies on the better than expected reading of new weekly jobless claims. The euro is currently trading down at 1,118. Among the commodities gold climbs to 1529,55 dollars an ounce, while oil is rather volatile. March 2020 Brent futures are down 0,39% to $65,73 a barrel. Meanwhile, international tensions around Libya are growing, after the green light from the Turkish parliament to send troops to support al Sarraj and the immediate condemnation of this choice by Egypt, which supports General Khalifa Haftar.
In Milan oil stocks are in green starting with Eni, +1,08%, but stocks such as Pirelli +4,01% stand out above all; Unicredit +3,59%; Stm +3,3%; Finecobank +2,95%. Italgas, +2,28%, celebrates the award of the tender for the supply of the gas service in the 74 municipalities of the Val D'Aosta and recovers the losses of the last session.
He does not participate in the Atlantia banquet, which closed with a drop of 3,03%. The risk of concessions for Austrade for Italy still weighs on the stock, with the minister Luigi Di Maio who does not let go of the point and the Milleproroghe decree which seems to go in this direction. Slight decreases for Snam -062%; Terna -0,5%; Campari -0,25%
Among the minor stocks IVS +12,87% makes full purchases, after announcing that Torino 1895 Investimenti, holding company of the Lavazza family, purchased 6,9 million shares equal to 17,71% of the capital sold by Amber Capital UK and Amber Capital Italia. According to Il Sole 24 Ore, the investment would have been around 75 million euros with a 26% premium on the value of the stock.
Euphoria does not infect government bonds. Indeed, the spread between Italian and German XNUMX-year bonds is on the rise at 163 basis points, +2,25%, while the yield of the BTP is at 1,4%. Perhaps the political tensions in the 5 Stars and the disappointing macro data weigh. In fact, Italian manufacturing activity contracted in December for the fifteenth month in a row, offering the worst reading for almost seven years. The PMI index edited by IHS Markit fell last month to 46,2 from 47,6 in November, below the threshold of 50 that separates growth and contraction.
