The new decline in oil prices and the negative data from China, where a decline in the profits of industrial companies is reported for the sixth consecutive month, helped fuel sales yesterday both in the USA and in Europe, albeit in a context of reduced trade due to the semi-festive climate.
This morning the Asian lists attempted a timid rebound: Tokyo +0,3% like Shanghai, which lost 2,6% yesterday. Better Sidney +0,9%, Korea is also in positive territory. But the Asia Pacific index is about to close 2015 down by 12%.
Even Wall Street risks ending the year in the red. Yesterday the S&P index and the Nasdaq closed at -0,2%, the Dow Jones at -0,1%. The balance since the beginning of the year is positive only for the Nasdaq +6,4%. The Dow lost 1,7%, below the S&P0,1 by 500%.
IRAN EFFECT ON OIL. AND THE BANKS SHAKE TOO
Conditioning the session was the drop in crude oil, struck by the confirmation that Iran intends to proceed, as already announced, with the increase in production by 500.000 barrels per day. US WTI oil fell 3,4% to 36,8 dollars a barrel, after recovering 9,7% last week. Brent is traded at 36,62 dollars (-3,4%)
As a consequence, oil stocks are down: Exxon falls by 0,7%, Chevron -1,8%. The losses of Marathon Oil -6% and Consul Energy -9% were more massive.
But the oil emergency has also triggered the alarm for banks and financial stocks, involved in financing the exploration and extraction of hydrocarbons. The Financial Times notes that banks could also be evaluated in the upcoming stress tests on their ability to withstand a scenario with even lower crude oil prices. Jp Morgan loses 1%, Goldman Sachs -1,1%, Bank ofAmerica -1,2%.
The euro/dollar exchange rate moved little at 1,098, from 1,096 at the previous close. The Canadian dollar is under pressure on the currency markets: 1,3872, close to its 11-year low against the US currency, in line with the drop in raw materials.
MILAN -0,4%. TODAY'S BOT AND CTZ AUCTION
Weak price lists and reduced activity also in Europe, with the resumption of activity after the Christmas break.
In Milan, the FtseMib index lost 0,4%. The Paris and Frankfurt indices fell by 0,9% and 0,6% respectively. Worst of all, Madrid -1,4%, now embroiled in a political crisis that is difficult to resolve. The London Stock Exchange was closed for public holidays.
Modest volumes also on the bond market. The ten-year BTP yield stopped at 1,644%, the BTP/Bund spread is 103 points.
Today the Treasury offers the first securities of 2016 to be auctioned. 6 billion of 6-month securities and Ctz for 1-1,5 billion will be placed. Tomorrow will be the turn of medium-long term securities: 4,5-6 billion Btp at 5 and 10 years and a 7-year CCteu.
ENI BETS 10 BILLION ON EGYPT
The oil price landslide also weighed in Piazza Affari.
Eni -0,6%. The six-legged dog is expected to invest between 6 and 10 billion dollars in the development of the Egyptian maxi-field of Zohr, said the number one of the General Petroleum Corporation of Egypt, Mohamed El-Masry, during a press conference held on Saturday in Cairo. He also down Saipem -1,3% and Tenaris -1,8%. Among the utilities, Enel slips -0,4%. Enel Green Power -0,80% has started construction of the solar plant in Ituverava, Brazil, which once completed at the end of 2017 will be EGP's largest solar plant: the total investment will amount to approximately 400 million of dollars.
Kepler Chevreux remains positive on the renewables sector and confirms the buy rating on Erg +1,13%, Falck Renewables +0,73% and Alerion +0,43% with target prices respectively set at 14,6 euros and 1,6 euros and 3,6
BANK MERGER, BPM IN THE LIGHT
Among the Milanese blue chips MontePaschi defended itself well +0,4%, after the announcement that the bank sold a portfolio of non-performing loans worth 1 billion euro. The package relates to 18.000 positions, reaching 1,7 billion including accrued default interest and/or other debits that are sold together with the capital.
The receivables assigned are mainly "unsecured", the counterparties are almost exclusively companies, these are non-performing loans that began in 2009.
Among the other banks, Unicredit -0,7% and Intesa -0,5% fell.
The best was Popolare di Milano +1,7%. According to the latest rumors, the management of the Milanese bank is conducting separate and parallel negotiations with Ubi and Banco Popolare to arrive at defining the best combination proposal.
FCA (+37% IN 2015) READY TO SPIN OFF FERRARI
Weak Fiat Chrysler, down 0,1% on the eve of separation from the subsidiary Ferrari through the spin-off mechanism, which provides that Fiat shareholders will be awarded one Ferrari share for every 10 Fiat Chrysler shares held. The operation will take place between January 3 and 4. On 67 January, the first day of Ferrari's listing on Piazza Affari, approximately 23% of the capital will be distributed on the market. Exor, the holding company of the Agnelli family, will have the largest share, equal to 10%, and Piero Ferrari, son of the founder, will have 17,2%, while Fiat Chrysler will no longer have even one Ferrari share. Equita Sim confirmed the buy recommendation on the stock and the target price at XNUMX euros.
Fiat Chrysler is preparing to close 2015 on the stock market with a rise of 37%, behind only Renault (+55%), while among the big Germans Daimler is the most brilliant with a gain of 13%, BMW is up 9% and Volkswagen shows a 27% drop.
Among other industrialists, Finmeccanica drops by 0,7%, StM -1,6%, Prysmian -1,1%.
RCS IN RECOVERY. MEDIOBANCA RECOMMENDS MEDIASET FOR 2016
The rebound of Rcs +7% continues in the wake of the new industrial plan presented last week after reaching an all-time low of 0,446 euros on 15 December. Schroders Plc announces that it holds 5,087% of the company under indirect non-discretionary asset management
Purchases on Mediaset +0,88%: Mediobanca Securities confirmed the outperform rating on the share and the target price of €4,84, defining the stock as one of the 'core longs' for 2016.
Telecom Italia also rose +0,5% on which Equita Sim left the buy recommendation unchanged and the target price at 1,33 euros.
A DOUBLE-DIGIT RAISE POKER
Trevi gained 11% which adds to the +14,5% recorded in the last trading session on December 23rd. The leap is due to the expectations for the assignment of the works for the safety of the Mosul dam in Iraq.
New flight for Pininfarina, up 14,87 to 3,45 euros, well above Mahindra's takeover bid price of 1,1 euros. The stock will remain listed on the Milan Stock Exchange even after the acquisition by the Indian group.
In evidence Zucchi +15% after the signing of the agreement with the lending banks.
Finally, note the leap recorded by Snai +11,8 in the afternoon, with a peak in volumes, more than double the daily average of the last 30 days.
