MILAN TO PIOMBO (-3,87): MANY BIG SUSPENDED
FTSE/MIB BELOW 18 THOUSAND. THE SPREAD RISES TO 345
Other than recovery. It's a catastrophe. The Milan Stock Exchange sinks into the day in which many, on the eve of it, had bet on a rebound: a deadweight loss close to 4 percent after the opening of Wall Street, a performance that ensures the worst stock market title for the Italian Stock Exchange today too. After the optimism at the start, the upturn was favored by the increasingly justified belief that the agreement reached overnight to raise the debt ceiling for the United States will not prevent the cut of the American debt rating , “It would not be a total surprise – comments the daily note from Equita sim – but it could create new pressure on the markets”.
AFTER THE DEAL, THE USA RISKS LOSING TRIPLE A
MANUFACTURING FIGURES TRIGGER WALL STREET SALES
Objective already achieved for the Italian Stock Exchange: the Ftse Mib index has slipped below 18.000 points (17.720 the Ftse/Mib index) with a plunge of 3,87%. Sales affect the entire Italian list, there are no distinctions or sheltered areas, the average reductions are in the order of 4% and it is not only the banks, in any case in free fall, in the crosshairs with reductions between 5 and 8%. Several stocks in the main basket mark year lows, in some cases historic lows. And there are numerous companies suspended from negotiations at least once: Intesa, Banco Popolare, Mps, Mediaset, Telecom Italia, to mention only in the case of a few big names.
Madrid also fell (-2,7%), while Paris (-2,27%) and Frankfurt (-2,86%) marked significant declines. Paradoxically, the dollar is recovering strongly against the euro at 1,427 and this clashes with the rumors of a possible cut in the "triple A" rating of the United States, which scares Italy more than the States which certainly do not shine. In fact, the wave of sales intensified after the publication of the US ISM manufacturing index, which fell to 50,9 points in July with expectations indicating 55 points.
The figure triggered the reverse of American stock exchanges: at 16,20 Italian time, the Dow Jones entered negative territory -0,3%, around 12.105 points. Meanwhile, the Standard & Poor's 500 index dropped four tenths of a percentage, at 1287. The Nasdaq was down 0,2%, at 2750.
Nothing comparable to the storm that has once again unleashed on Europe, however considered the weak link in the global economy. Starting from Italy. The demonstration of the existence of an Italy syndrome is confirmed by the sharp movement on the bond market. The yield differential between the Italian ten-year BTP and the German Bund widened by more than 20 basis points in the space of a few hours. The Btp-Bund spread, which stood at 322 points this morning, is now traveling in the 345 basis points area, not far from the highs since the introduction of the single currency.
ONLY THREE MIB 40 STOCKS IN POSITIVE SOIL
NEW BANKING COLLAPSE. BLACK JERSEY IN FONSAI
Only Campari in the main basket recorded a positive result: Campari +0,70%, Tenaris +0,45%, Autogrill limited the damage (the stock is on the list of ten stocks to keep between now and the end of the year according to Citigroup) and Tod's. All the rest is in more or less deep red. The black jersey, up until a few minutes from the end, was Fonsai -9,19%, followed by Mps -7,87%, Banco Popolare -7,69% and Intesa -7,86%. Unicredit loses "only" 3,93%.
Even Prysmian ends up in negative territory (-3,49%) despite the fact that the company has communicated that it has won an order worth 200 million euros for connections to the mainland of a photovoltaic plant located offshore. Or Finmeccanica (-2,71%) recovering in the morning after last week's collapse. The managing director Giuseppe Orsi has given an interview to Il Sole 24ore in which he excludes the need for a capital increase, anticipates that the group will close 2011 with a profit and announces that assets in the United States will be put up for sale for a value of 600 million dollars.
BREMBO SKIDS WHEN BRAKING (-8,22%)
HARD PUNISHMENT FOR MAIRE TECNIMONT
Out of the main basket it falls Brembo -6,83%, despite an excellent quarterly performance: the market fears that the Bombassei-based company is destined to slow down between now and the end of the year. Maire Tecnimont, on the other hand, lost 8,33%, after having limited the damage that exploded in the morning for a good part of the session (-18% at the start of the session). The management ruled out the need for a capital increase and said during the meeting with analysts that there are no financing problems. Last Friday, the company presented a half-year report characterized by heavy adjustments to the value of orders in South America. As a result of this devaluation, the period closed with a loss of 152 million euros.
