CARS AND LUXURY DRIVE EUROPE'S REBOUND. MPS ON THE COROLLASTER, OIL AT A MINIMUM
Piazza Affari +1,08% closed with a positive sign behind the other European markets which benefited from the rebound in crude oil and the recovery of sectors more penalized by the turbulence in China such as luxury. Paris rises by 1,53%, Frankfurt +1,63%. London +0,98%.
Against the fixed income session, conditioned by the strong supply of new issues in Europe, Spain placed 9 billion 29-year bonds (7 billion demand). The Treasury placed 12 billion 0.074-month BOTs at a negative rate of -3%. Tomorrow it will be the turn of Btp 0,085 (traded yesterday at 0,11% against the previous 5%), Btp 1,042 (0,98% up from 15%) and Btp 2,081 (2,14% against XNUMX%).
On Wall Street, the Dow Jones index rose by 0,2%, S&P500 +0,7%, Nasdaq +0,37%. Crude oil prices remain weak, just above 30 dollars: Brent trades at 31,4 dollars a barrel, Wti at 31,2 dollars (-0,6%). In these junctures, Eni and other oil stocks went up and down. At the end of the session, the six-legged dog shows a slight progress of 0,2%, Tenaris -0,5% Saipem + 4,2%.
On the other hand, prices were supported today by the Beijing authorities who specified that they do not intend to lead the yuan towards a competitive devaluation to support exports. On the corporate front heavy fall of Alcoa -7% after fourth quarter 2015 results. Thursday evening results of Intel + 1,5% JP Morgan +0,1% and Citigroup +0,3% will announce the results for the fourth quarter of 2015. The dollar is strengthening against the euro, down to 1,083 from 1,085 at yesterday evening's close.
The rebound of luxury on European price lists is robust. In Milan shines the star of Ferragamo +6,4% to 21,94 euros. At the head of the platoon of griffes it stands out Brunello Cucinelli +9% after the results. Well too Moncler + 7% Tod’s + 3,3% Yoox + 4,3% Luxottica + 4,4% Geox + 2%.
In Paris LVMH rose 3%. Citigroup has started hedging the stock with a Buy rating and a target of 27 euros. The news from Detroit galvanized the automotive sector (industry Stoxx +2,7%). Volkswagen gained 4,3%, Peugeot + 5% bmw +2,5%. At Piazza Affari Fiat Chrysler rose by 2,8%, Ferrari + 3%.
Seat on the roller coaster for Mount Paschi e Carige. The Ligurian bank took off and managed to close with a leap of 7,68%. Mps +0,27% almost eliminated the gains in the final at the end of a day in which it fell to -4% and rose to +3%. For the Genoese bank, volumes are almost six times the average for the last month, more than double for Siena. Both remain below the psychological threshold of 1 euro.
More money on Bpm +2,42% and Banco Popolare +2,20%, now considered the betrothed. Unicredit still suffers -0,98%, despite the sale "card against card" of the Ukrainian subsidiary to Alfa bank.
Positive Telecom Italy +0,3%, supported by JP Morgan which raised the target price to 1,4 euro with an Outperform recommendation. The president of Cdp Caudop Costamagna said he did not rule out the possible sale of Metroweb to the former incumbent. In Paris Orange gains 4,1% after confirming that it is in very advanced negotiations for the merger with Bouygues.
Finally, the sharp drop of A2A -5% after the downgrade by an important Italian broker should be noted.
