A week of general weakness due to fears about global growth and uncertainties on the Spanish front ended in negative territory for European stock markets with the downgrade of Spain by S&P. Milan loses 0,78%, Paris -0,72%, Frankfurt -0,68%, London -0,62%. Madrid loses 1,06%.
The euro is on the rise to 1,2954 against the dollar also driven by the unexpected good data on industrial production in the Eurozone which in August increased by 0,6% compared to July (when it rose +0,6%) and in EU by 0,3% (+0,1% in July). The renminbi rose to a nineteen-year high against the dollar.
While in Greece negotiations are proceeding with the Troika to reach a definitive agreement on the package of budget cuts for the two-year period 2013-2014 before the European summit on 18 October. Troika is still at work and the clash is igniting between those who are in favor of giving Athens more time to meet the commitments made to reduce the deficit (including the IMF, while Berlin has repeatedly reiterated its no), an injection of trust came from Sweden: the 2012 Nobel Peace Prize was awarded to the European Union which “contributed to the advancement of peace and reconciliation, democracy and human rights in Europe”. A signal in favor of unity and sharing that comes in a moment. The Btp bund spread closed stable at 352 points with a yield below 5% at 4,97%, after falling below the 350 threshold in the morning. The Bono bund spread fell to 416 basis points.
On the other side of the ocean, Wall Street also reduced its pace, which had instead opened in positive territory from the unexpected leap in US consumer confidence: the Michigan index fell in October to 83,1 points from 78,3 points. Predictions were for a drop of 78 points. At the close of Europe, the Dow Jones turned negative at -0,12% and the Nasdaq fluctuated around parity at -0,06% Good results also on the corporate front with Wells Fargo which archived record profits in the third quarter of 2012 (+22% to $4,94 billion from $4,06 billion in the same period last year) and JpMorgan beat expectations with revenues of $25,9 billion (+6% year-over-year) and net income, which reached 5,7 billion (+34%). Results obtained also thanks to the strong growth of mortgages, according to the CEO Diamon real estate is at a turning point.
Stm flies to Piazza Affari +6,5% with sustained exchanges despite the denial of the hypothesis of a spin-off that could lead to the sale of the division that produces semiconductors in mobile telephony. The stock jumped 13% in the morning. Mediaset also stands out +2,35% also following the rumors of a possible change in the top management of the advertising agency Publitalia. Geox leaps +5,03% following the signing of a distribution contract in China through a local partner. Today Diego Bolzonello resigned from his position as general manager of Geox and director of Geox Spa and other Group companies to take on new professional challenges.
At the bottom of the list, Saipem -5,58% and also the Fiat galaxy: Exor -2,40% and Fiat -2,10%. Lingotto is in talks to open a factory in Russia. On the Italian situation, on the ongoing negotiations with the government to relaunch the group's productivity in Italy, Marchoionne stated that the group has “presented a valid proposal. Now we have to find an agreement with a certain speed”.
The banks are also in the red: Unicredit -1,77%, Bpm - 2,02%, Intesa -0,86%. Camfin collapses by 5,81% after the placement of bonds convertible into Pirelli ordinary shares, for 150 million euros.
