The US corporate results and the disappointment on the durable goods orders data hit Wall Street (where the snowstorm alarm has returned) and dragged the Dow Jones down by 2%, also due to a session conditioned by volumes thin (a third of the average due precisely to the alarm on the arrival of what was thought to be the worst snowfall in history).
Also down was the Nasdaq which lost 1,95% and the S&P500 which lost 3%. The performance of Wall Street, together with the drop in the Greek Stock Exchange, weighs heavily on Europe where profit-taking has started pending tomorrow's Fed decisions (the market is thinking about the timing of the increase in interest rates now that the ECB launched the Qe). After losing around 1%, Milan limits the decline and closes at -0,53%. On the other hand, the other main squares grew heavier in the afternoon, in line with overseas moods: Paris -1,09%, Frankfurt -1,57%, Madrid -0,91%, London -0,6%.
If the Continent's price lists weren't particularly affected by the Syriza storm in the aftermath of the elections that decreed its victory, sales were unleashed in Athens today. The index closed sharply lower, sunk by the banks and the sell-off intensified after the official appointment of Yanis Varoufakis as finance minister in the new Greek government led by Alexis Tsipras whose hard line worries investors despite reassurances willingness not to leave the euro.
The Btp-bund spread increased, closing at 115 basis points. Government bonds continue to benefit from the abundant liquidity, especially after the announcement of quantitative easing. Today the Italian Treasury recorded strong demand and a new all-time low for the CTZ allotted at auction in the first placement after the start of QE by the ECB. In detail, the ninth tranche of the two billion Ctz expiring on 30 August 2016 recorded a demand of 3,17 billion. The supply-demand ratio stood at 1,59. New all-time low for the yield, down 21 basis points to 0,281%. However, the Btp-bund spread rose to 116 basis points.
Moscow's Micex index rose 1,92% after a negative start following S&P's decision, communicated last night after markets were closed, to downgrade the country's credit rating to junk. For Moscow, the decision by the Standard & Poor's agency to downgrade Russia's rating was taken by direct order from Washington: "The fact that this decision was taken today is not surprising - said the deputy minister of foreign affairs, Vasily Nebenzia, to the Ria Novosti news agency -. It didn't happen by a strange coincidence, but it corresponds with a new wave of anti-Russian hysteria. I have no doubt that it was taken not on suggestion, but on direct orders from Washington."
WTI oil goes up by around 1% to 45,63 dollars a barrel and the euro-dollar exchange rate recovers to 1,1368 (+1,16%). As mentioned, in the USA the results of some big corporations such as Caterpillar, Microsoft, P&G were disappointed, precisely held back by the strong dollar. Intel falls while waiting for the results and penalized by the data of the other technological giants. However, orders for durable goods in December were also below expectations, falling by 3,4%. On the other hand, sales of new homes in December were up 11,6%, the consumer confidence index jumped to 102,9 in January and the PMI Markit index in January to 54 points. The Fed's Richmond index was down 6 points from 7.
Piazza Affari recovers ground in the afternoon thanks to the race of Saipem, best stock of the Ftse Mib +4,04%, driven by rumors that it would be favored in the tender for the construction of the Kashagan pipeline, which could be worth up to $2 billion. A2A +3,21%, Mediobanca +2,05% and Autogrill +1,7% also did well. At the bottom of the Ftse Mib Cnh Industrial -3,33%, FCa -3,02%, Moncler -2,4%, Stm -2,39%. Banzai has been admitted to trading by Borsa Italiana. Banzai Spa, an internet company specializing in e-commerce and online vertical publishing, which is 28,1% owned by Matteo Arpe's Sator and the founder Paolo Ainio who has the same share.
