Santa isn't in the mood for presents in this one Friday 17 which sees the European stock exchanges close in the red (albeit far from the lows of the session), on the "day of the 4 witches", so called because index futures, stock futures, index options and stock options expire at the same time. A situation that increases the degree of volatility, already sustained.
The opening bell is also out of tune a Wall Street, with the financial and energy sector in sharp decline. Today the Dow Jones is especially down (-1,1%), while the Nasdaq, penalized in recent days by a rotation on stocks, is at parity.
Business Square loses 0,64% and rewinds the tape up to 26.611 points, weighed down by Diasorin -10,83%, literally overwhelmed by sales after presentation of the new business plan to 2025. The secondary is in green instead, after yesterday's tensions following the decisions of the ECB. The spread between 10-year BTPs and Bunds of the same duration it falls (-2,37%) to 129 basis points and the yield on the Italian bond falls to +0,91% (the Bund unchanged at +0,38%).
In the eurozone equities, the climate is similar or worse than in Milan: Amsterdam -1,27%; Paris -1,12%; Madrid -0,82%; Frankfurt -0,67%. Outside the single currency area you save London, +0,09%, despite the difficult political phase of Prime Minister Boris Johnson.
CENTRAL BANKS, OMICRON EVERGRANDE: SOME GOOD REASONS TO GET CASH
There is no shortage of reasons for concern on the markets, as we head towards the Christmas holidays and after the lavish gains achieved by investors in recent months.
In particular, central banks have begun to change pace, even if they are moving in random order. Fed and ECB appear united in their choice to end the pandemic stimuli, but divided on the forecast of a rate hike, which should be three in the US next year, starting in May, while in Europe a hike in 2022 "seems unlikely" though not impossible.
To fuel the volatility, apart from the day of the 4 witches, is then the Omicron variant, on which we continue to hear everything and its opposite in terms of gravity; in terms of contagiousness, however, it seems that there are no doubts and that its speed is supersonic. The mutation is already dominant in Scotland, Great Britain updates a record of infections every day and Denmark closes cinemas and theaters for vaccinated and non-vaccinated people to stem the spread. In Italy, 4 regions have moved to the yellow zone since Monday. Three vaccines are said to protect, yet the European Union has ordered 180 million Pfizer doses specific against the variants.
Bad news then arrived in the morning from the Asian front, for the real estate giant Evergrande. S&P Global Ratings said indeed the company insolvent, which has long been the focus of international attention due to its very high debt, which puts it at risk of default and which could have a significant impact on the Chinese economy. The agency cut the rating to "selective default" for failure to pay coupons by the end of the grace period (in early December), which could trigger cross-defaults on $19,2 billion of debt. S&P also withdrew its rating on the group, at Evergrande's request.
INFLATION: HISTORIC HIGHS IN NOVEMBER
Inflation continues to manifest itself in full force in the euro area, reaching an all-time high in November, even if more than half of the increase is due to energy prices.
Eurostat confirms that inflation in the 19 euro area countries has increased to 4,9% on an annual basis, in line with previous estimates. On a month-to-month basis, the expansion was revised down to 0,4% from 0,5%. Excluding the volatile component of energy and unprocessed food prices – a measure also defined by the ECB as 'core' inflation – prices advanced by 0,1% on a monthly basis and by 2,6% on an annual basis.
German business morale meanwhile fell for the sixth consecutive month, with Europe's largest economy sapped by supply shortages and coronavirus restrictions, a survey released today showed.
The Ifo institute said its business sentiment index fell to 94,7 from a revised November reading of 96,6. A Reuters poll of analysts had indicated a December reading of 95,3.
OIL DOWN
The return to the fore of the pandemic slows down the Petroleum. Brent and WTI futures are down today, respectively by 1,8% to 73,67 dollars a barrel and 1,65% to 71,20 dollars a barrel.
DOLLAR RECOVERY AND GOLD IN FRACTIONAL RISE
After the recent declines, the dollar is recovering, the index of which rises by 0,35%. The euro retreats, after yesterday's flare-up, following the decisions of the ECB. The single currency is trading lower and the exchange rate is moving around 1,273.
Gold appreciates fractionally and spot gold moves above 1803,30 dollars an ounce.
RAISES AND REDUCTIONS AT PIAZZA AFFARI
The main Milanese price list moves away from the lows of the session in the finale.
Among the titles in process there are Amplifon +2,04% and Atlantia + 1,14%.
Leonardo +0,96% is confirmed in a positive phase pending the sale of the subsidiaries Oto Melara and Wass, also thanks to the willingness of the government to support Fincantieri's involvement (-3,11%) in the purchase of the assets.
UTILITIES RECOVER: ENEL SHINES
Telecom moved little +0,16% on the day of the farewell of the ex to Luigi Giubitosi, who also leaves the board of directors of the group. The manager, writes Ansa, has found an agreement with the company that respects the provisions of the contract, including indemnities, but without 'maxi' good exits (as speculated by rumors in recent days). The step back took place in the spirit of the letter in which he had explained his resignation from the powers of managing director and general manager.
The banks are mixed. Unicredit finds the plus sign again, and closes with an increase of 0,46%.
Sink instead Understanding -1,65%.
Flat Bper, -0,17%, the day after the Fitd meeting which rejected the proposal made by the Emilia-based institute for Carige because the request for a preventive recapitalization of one billion does not comply with the Fund's statutory provisions. Uncertainty about the deal weighs more heavily on Carige, -7,19%.
Shy Ps +0,13%, whose board should have examined the industrial plan to be submitted to the MEF before starting negotiations with the EU for the granting of an extension to the disposal of the Treasury quota.
In the lower part of the price list, Diasorin archives a session to forget, with investors on the run for an industrial plan to 2025 which forecasts revenue growth in 2022 weaker than expected, due to the sharp drop in turnover linked to the tampon business for the Covid, and 2025 marginality targets slightly lower than analysts' estimates.
They are in deep red too Finecobank -3,92%; Prysmian -1,99%; stellantis -2,61%; Exor -1,53%.
