Two good news from the hot fronts of currencies and bonds have cooled the tension in the last session of a week of high tension. China's central bank set the yuan's reference value for the day at 7,013, lower than economists had expected. It is the signal that the Beijing authorities are ready to intervene should the currency screw down.
The other positive note concerns the US Treasury auctions. The market absorbed the supply of 19 billion dollars of 30-year bonds with moderate demand, partially offsetting the fear of a collapse in yields: the rate recovered to 1,71% from 1,595 on Wednesday, at its lowest since October 2016.
The double signal, combined with the rebound on Wall Street (the result in part of the purchases of automatic programs triggered below certain levels), brought some buoyancy back to the stock markets this morning. But optimism has been curbed by the US decision not to suspend, for now, the ban on American companies doing business with Huawei. Gold benefits from this, receiving the Oscar on the investment front: 1.507,90 dollars an ounce, the highest for six years. In dollars, because in euros the yellow metal is already at the top.
Thus begins the last session of the week, complicated by winds of political crisis in Italy (tonight, moreover, Fitch's verdict on the rating arrives) and by the landslide of the pound, but comforted by the green breeze blowing from Berlin. The German environmental bonds will arrive in September, the first, incisive break with austerity in the name of the environment.
Tokyo's Nikkei gains 0,5% on the day of the release of data on Japan's economic expansion: gross domestic product rose by 1,8% in the second quarter, slowing down from +2,8% in the first quarter but much better than expected. The yen rose above 106 against the dollar.
The increase also prevails on the Kospi of Seoul (+1%) after the launch of the high-cost Samsung mobile (over one thousand dollars). India was also positive (BSE Sensex of Mumbai +0,7%) despite the serious crisis in Kashmir.
The Chinese Stock Exchanges are more cautious: Hong Kong loses 0,2%, while the CSI 300 index of the Shanghai and Shenzhen stock markets is down 0,7%. In July, inflation rose by 2,8%, the sharpest increase in the last fourteen months.
Yesterday evening Wall Street closed with a strong rise: Dow Jones +1,4% driven by Boeing and Microsoft; S&P 500 +1,9%. The Nasdaq advanced 2,2%.
In great evidence Uber (+8,2%) despite the red caused by the costs of the IPO (5,2 billion).
Semiconductors are flying: Amd +16,2% after the announcement of the launch of a new chip that will be adopted by Alphabet and Twitter; Symantec +12,3% after entering the cyber security field.
The downside is the Kraft Heinz crisis, which canceled assets worth more than a billion dollars. Since January, the food giant has lost 14%.
Brent oil settles at 57,2 dollars a barrel, down 0,3%, from yesterday's +2%.
BERLIN'S GREEN BONDS WAKE UP EUROPE
A day marked by an increase also for European stock exchanges, reinvigorated by the launch of Wall Street. The risk of early elections does not stop the rebound of Piazza Affari nor that of the City, after Boris Johnson confirmed that, if he is discouraged, he will resort to the polls. The recovery of oil also supported the price lists.
But the real news is the news anticipated by the German newspaper Handelsblatt, which wrote that the German government is evaluating the possibility of increasing investments in the field of climate change with a conspicuous increase in debt. In the afternoon, a spokesman said that no decisions have yet been taken, but the political value of an opening that undermines the budgetary orthodoxy beyond the Rhine remains.
The market reaction was immediate. The 0,528-year rate climbed up to -0,61% from the new all-time low of -0,585%, to close at -XNUMX%.
Saipem rose by 3,04% and Eni by 1,82% in a European sector which was positive by around 1,3%.
PARIS AND ZURICH LEAD THE CHARGE
Piazza Affari finally scores an increase after three days in the red: +1,47% to 20 points.
Paris (+2,3%) erases the losses of the week: Arcelor Mittal and Airbus lead the rebound, both +4%. More timid Madrid (+1,32%).
Frankfurt -1,69%: Thyssen gains (+2,7%), weak Adidas (-1,8%) after the accounts. The worst performer in the Eurozone is Osram (-7,07%) after its main shareholder rejected a takeover bid for 3,4 billion euros by private equity firms Bain and Carlyle.
Outside the single currency area, London gains 1,25%. The best stock exchange is Zurich (+2,46%). Pharmaceuticals are flying: Novartis +3,37%, Roche +2,3%
Il Bulletin of the ECB reiterates the institute's intention to react to the slowdown in the economy. “The most recent data and the latest survey results – it reads – point to somewhat weaker growth in the second and third quarters of 2019”. The Central Bank then reiterates that it is ready to put in place new instruments to deal with the slowdown.
SPREAD UP, FITCH'S VOTE TONIGHT
The bond bond session on the eve of Fitch's judgment was thwarted. The rating update on Italy's accounts, currently BBB, will be released tonight with the markets closed. Yesterday the spread reached a maximum of 213 points before retreating to 210 (from 199 on the eve) in the face of growing political uncertainty.
The ten-year rate is around 1,54%, compared to 1,52% at the start and after closing at 1,40% the previous session (minimum at 1,38%).
Yesterday the 10-year yield had fallen to 1,38% and the spread up to 198 basis points.
UNICREDIT (+1,43%) IN MOURNING FOR SACCOMANNI
Banks were not affected by spread movements. Recovery for Unicredit which rises by 1,43% after yesterday's crash on the disappointing quarterly and the cut in the guidance on revenues. Shortly before the closing, however, the news arrived of thesudden disappearance of the president, Fabrizio Saccomanni.
BPER BRAKES, FINECO AND CREVAL TAKE FLIGHT
Down Bper, down 2,8% after the quarterly yesterday which did not show particular positive surprises. For Equita, the results are in line with expectations "also in terms of guidance and strategic indications". Kepler Cheuvreux reduced the target price from 4,4 to 4,2 euros, confirming the buy recommendation.
Shopping continues Banco Bpm (+2%) after the positive half-year. Intesa (+1,85%) and Creval (+5,4%) were also well received.
The asset managers are in tune: Banca Generali +1,7%, Azimut +1,5%, Fineco +4%.
Stm (+4,01%), Atlantia (+3,35%) and FCA (+1,28%) are recovering.
DIFFICULT STOCKS: TOD'S, DATALOGIC, IMA
Tod's closed down by 1,96%, penalized by the accounts for the first half which showed revenues down beyond expectations and a loss for the period. The stock has soared more than 20% in the past two weeks for no apparent reason. According to Mediobanca Securites, "the failure to meet expectations for the half-year justifies a negative market reaction because it reflects the drop in confidence in the company's ability to return to profitability".
Among the negative notes Datalogic (-9% and -47% in the last year), worst share of the day.
Ima falls (-9%) after the cut in the target price by Equita which also lowered the rating from buy to hold on Gima TT (target from 8,7 to 8,2 euros).
On Aim there was a heavy drop at the debut for Copernico Sim, which fell by 8,15%.
