The markets, which slipped one step off the precipice, reacted thanks to the boost coming from data on the labor market and US industrial production which were clearly better than expected. The Asia Pacific index closed the week, however negative (-0,6%) with a timid +.0.2%. But, to confirm that the situation remains very delicate, there is the negative note of Tokyo, still the decline.
However, Wall Street holds the dam: the Dow Jones index is down slightly -0,06% but defends 16 points (16.117 points at the close), the S&P +0,01% substantially unchanged, the Nasdaq increases by 0,28 .XNUMX%. The resistance of the US Stock Exchange acted as a shield for Europe, which started a new, catastrophic decline in the morning.
RECOVER THE CAR IN EUROPE. MILAN AVOIDS THE BREAKDOWN
Instead, at the end of the day, the London Stock Exchange fell by only 0,2%, Paris -0,5%. Signs of hope for tomorrow come from Frankfurt, where the Dax index recovered in the final closing at +0,1%, supported above all by the car sector. The Stoxx auto motive index, among the most sacrificed in recent weeks, advanced by 1,8%. thanks to the recovery of by Volkswagen (+2,2%) and Daimler (+2,1%). Fiat Chrysler recovered and closed positive (+0,2%) together with Pirelli (+1%) and Cnh Industrial (+3,6%). Brilliant Brembo (+2,9%).
In Milan, the FtseMib fell by 1,2% but recovered significantly from the landslide in the morning (it lost 4% in the middle of the session), bringing the performance since the beginning of the year to -4,4%. The euro also cools down, but not too much, traded at 1,2811 against the dollar after having touched 1,29. Even oil, after the long decline, recovered one dollar: Brent rose to 86 dollars a barrel. But oil is on its way to closing the fourth consecutive week lower.
BTPs DISTURB, THEN RECOVER. THANKS TO BALLARD (FED)
The hottest source of the crisis, however, concerns the interest rate market. Yesterday the race for the "safe haven" continued for most of the day, i.e. the debt securities judged safer in times of crisis, to the detriment of the "peripherals". The yield of the BTP rose to 2,55%, on the highs of the last month and a half, from 2,29% at the previous close. The spread widened by 6 points to 173 after having punctured, around 12, 200 in an atmosphere of pure hysteria.
Instead, this morning Treasury management will announce the guaranteed minimum real rate of the new BTP Italia, the instrument indexed to national inflation – which does not exist – available to investors next week from 20 to 23 October. Spain and Portugal also suffer. Greece's 8,64-year bond collapsed, its yield rising by more than one percentage point to XNUMX%, a level not seen for a year.
Conversely, the US T bond fell below 2% against a yield last January of around 3%, unexpected behavior even just a week ago. The growth of the US economy, combined with the end of tapering, should have translated into an upward trend in rates. Meanwhile, in the most delicate moment of the day, the German 0,76-year bond posted a yield of XNUMX%, a price which confirms on the one hand the forecast of a flat economy, on the other the renewed fears of the Eurozone, marked by the strong growth of the Vix, the index of fear.
However, in the afternoon, tensions were cooled by the statements of James Bullard, president of the Fed of Saint Louis: the current problems of the international economic situation, said the banker who does not enjoy the reputation of a dove, should push the Fed to review the timing of the restrictive measures. A highly anticipated speech by Janet Yellen is scheduled for today. The ECB is the one who has not yet taken a position after the storm on the price lists, which could even postpone the Abs operation to December, already too timid to encourage the markets. A lecture by board member Benoit Coeuré is scheduled for today. Given the events of recent days, the title says it all: "What the ECB has learned from the crisis".
MPS HAS ALREADY BURNED 1 BILLION OUT OF 5 OF THE INCREASE
In Europe, the worst sector is that of banks, and as usual when this happens, the Milanese list, heavily crammed with credit institutions, suffers more than the others. Unicredit fell by 3%. The project for the restructured credit platform developed by Unicredit together with Intesa Sanpaolo and Kkr "is going beyond expectations in terms of timing" said CEO Federico Ghizzoni. As regards the sale of Umccb, the manager replied as follows: “We have received the authorization from the Board of Directors to continue doing what we are doing. We discuss separately with both groups (Fortress-Prelios and Lone Star) and we will decide in the next few days who to continue with”.
Understanding -1,1%. The fall of Monte Paschi was very heavy (-8,7%) which yesterday reached an all-time low, coming to capitalize almost a billion less than the 5 it had successfully raised on the market on 4 July last. Concerns are being felt about the results of the European stress tests, which will be announced on Sunday 26 October. Thud also for Banca Pop.Milano (4,8%). Banco Popolare recovers and closes at -0,4%, Ubi Banca -3,2%. Among the other financial blue chips, a minus for Azimut (-3,87%).
THE STABILITY LAW DOES NOT PUSH UTILITIES
Oils are still down: Eni -0,8% and Tenaris -0,1%. Conversely, Saipem closed up 2,1%. Even the incentives provided for in the Renzi government's Stability Law to favor the consolidation of utilities, M equal to one billion euros, took a back seat on such a bad day. Hera sold 1,80% at 1,85 euro, A2A 1,41%, Acea 1,17% at 8,8, Acsm-Agam -3,64% at 1,031 euro, while Snam is rose by 0,95% to 4,032 euros.
Enel Green Power recorded a decline of 0,78% to 1,781 euros after starting work on the construction of Lalackama II, its fourth photovoltaic plant in Chile, for a value of approximately 32 million dollars. Heavy day for Enel -1,9% and very heavy day for Telecom Italia -4%. Among industrialists, StM limits the damage (-0,3%). In positive territory Finmeccanica (+1,7%) and the subsidiary Ansaldo Sts (+1,1%). Still substantial reductions for Autogrill (-2,5%) and World Duty Free (-2%).
TOD'S KICKS THE BEAR IN THE FINAL
In the end, a nice cue from Tod's (+3,2%). The stock interrupts a series of 7 negative sessions and rebounds from the lows of January 2012, achieving the strongest performance since last September 3rd. From the all-time highs (145,5 euros) reached a year ago, Tod's has in any case more than halved its prices, paying for the quarterly below expectations and forecasts of a slowdown in luxury consumption around the world. To date, less than 10% of analysts surveyed by Bloomberg (27) suggest buying. The average target price is set at 84,2 euros.
