Not even the Japanese dam is holding up to the flow of sales, where the BoJ has brought interest rates negative for the first time a few days ago. The Nikkei closed with a marked decline (-3,15%) despite the governor Kuroda reiterating his readiness to bring rates into further negative territory. The other Asian indexes were also in the red, from Shanghai to Shenzhen and Hong Kong, despite the fact that the PMI Caixin/Markit services index in January published today rose to 52,4, the highest since August 2014, and that Beijing authorities have introduced facilitation measures for the real estate market.
Oil calms down but is still in negative territory, dropping 0,7%. It is now below the 30 dollar threshold, at 29,71 dollars a barrel. Yesterday the collapse of the WTI came more than 4% and Brent lost more than 3%.
THE OIL BALLAST
All energy sources were affected, with the sector also having to digest the negative results of two giants in the sector. After the announcement of Vallourec are the accounts of BP which recorded a 91% drop in profit in the fourth quarter of the year to 196 million dollars, against 2,24 billion in the same period last year. The whole of 2015 closed with a loss of 6,48 billion.
Similarly, Exxon closed the quarter with a 58% drop in profit to 2,8 billion, the worst result since 2002. The ax of the rating agencies then fell on the sector with S&P placing five of the five giants under observation oil for a possible rating change: BP, Repsol, Sattoil, Totale and the Italian Eni. On the Stock Exchange, the six-legged dog closed down by 4,79%.
S&P's decision is expected two weeks after the publication of its 2015 results. The agency also cut Royal Dutch Shell's rating from 'AA-' to 'A+'. Among the oil companies, the rights to Saipem's capital increase collapse again (-21,52%, worst stock in the Ftse Mib).
However, a survey published by Bloomberg opens a glimmer of light: by 2016, for the 17 analysts questioned, WTI oil should return to 46 dollars and Brent to 48. But it is known, on this front, analysts have often indicated the highest numbers different. Meanwhile, the data on weekly US inventories is expected today. The market, disappointed by the expectations for a production cut, wonders what the OPEC countries will do.
EU AGREEMENT TO AVOID BREXIT
Brussels has published the draft of the agreement with Great Britain for the review of community relations. The document will have to be discussed with the other member countries to be approved at a European summit in mid-February. The word will then pass to a referendum in the United Kingdom. Today the president of the European Commission, Jean Claude Juncker, goes before the European Parliament to talk about the topics on the agenda of the EU Council of 18 and 19 February.
Yesterday, on the macroeconomic front, data on unemployment was released in Europe, which recorded a new decline. In Italy, Istat announced that in December unemployment in Italy returned to growth by 0,1 percentage points, settling at 11,4%. In 2015 as a whole, however, the overall number of unemployed in Italy decreased (-8,1%).
Among the macroeconomic data on which the markets are looking today are the January composite PMI index in the Eurozone, the inflation estimate in January in Italy and the estimate of new jobs in the United States in January.
FERRARI FALLS ON 2016 ESTIMATIONS
Oil and financial companies have thus ballasted the stock exchanges. In Europe, the worst price list was the Ftse Mib with a drop of 3,05%, followed by Paris (-2,47%), London (-2,28%) and Frankfurt (-1,97%). Wall Street also closed lower last night. The Dow Jones finished the session down -1,8% and the S&P500 up 1,87%.
Difficult day for Ferrari's horse which collapsed both in Milan and in New York after accounts in line with expectations but disappointing the market with prudent 2016 estimates.
YAHOO ANNOUNCES RENOVATION
Eyes on Yahoo whose difficulties are coming home to roost: the CEO Mayer has announced a restructuring of 15% of the workforce, for savings of 400 million which also includes the closure of the offices in Milan. The group said it was ready to evaluate strategic options, namely a sale of the Internet core business.
SALES ON BANKS
In Piazza Affari, the sales also affect the banks weighed down by the bail-in and bad bank issues. Among the worst of the Ftse Mib, Bmps (-8,24%) and Bper (-6,28%). Unicredit -3,24%, Ubi -5,21%, Intesa -3,43%. Sales also on Banco Popolare (-1,66%) and Bpm (-5,53%), in the spotlight for the M&A. But for the popular marriage there would still be some knots to untie and the CEO of Bpm Castagna affirmed that "all the options are still open".
The spread rises to 118 basis points, +5 points, and a yield of 1,5%. Only Atlantia closed positive on the Ftse Mib, gaining 0,4%. Spotlight on Banzai which closes down by 0,88%, despite possible interest from Mondadori.
