MILAN: THE WEEK CLOSES WITH A MINUS SIGN. MARKETS UNCERTAIN AWAITING THE FED'S WORDS
The Ftse Mib index in Milan closed the last session of the week with a drop of just under 1%. Frankfurt was also down -0,4%. On positive ground Madrid and London. Stable Paris. Despite today's adjustment, the balance of the week in Milan remains positive, the benchmark index closes with a rise of 0,6%. On the other hand, the trend in August was negative (-6,8%).
From Monday's lows of 20.158 points to today's highs of 22.276 points, the hike exceeded 10%. The government bond market is calm. The ten-year BTP closed the week with a yield of 1,92%. The market response to the auction in which the new ten-year bond eroded was positive. This morning the Treasury reached 72% of the funding forecast for 2015.
While awaiting indications from the Jackson Hole bankers' summit, the American Stock Exchange is slow: S&P500 -0,1%, Dow Jones -0,3%, Nasdaq -0,1%.
In an interview with CNBC, Stanley Fischer, vice president of the Fed, kept the markets on the edge: "A decision on rates - he said - has not yet been taken, also because we want to see what the macro data arriving between now and meeting of 16-17 September”. But the banker added: "We will not be moving from an extremely loose monetary policy to a tight one." The tightening, when it occurs, will therefore be gradual: "We do not intend to carry out a rapid increase in rates".
Consumption data, slightly below expectations, helped to curb the upward thrust of the last two days. Instead, the rebound of oil continues, the WTi future rises by 5% to 44,7 dollars, yesterday it gained 10%.
In the previous two sessions, the S&P500 index gained 6,2%, in the first two it lost 5,2%. At these levels, August would close with a fall of more than 5%, the worst month since 2012. Oil is back on the run following Thursday's rally (+10,3%, the most significant leap since March 2009).
Eni + 0,5% Saipem + 4%. Tenaris +2,5%. The world leader in pipes for the oil industry cashed in on the Credit Suisse promotion this morning. The recommendation rises to Neutral from Underperform. The worst blue chip in Piazza Affari was Ferragamo with a drop of 5,6% to 24,58 euros.
After the publication of the results, the stock had started to rise to reach a maximum of 26,50 euros. Then came the failures of the business houses. Equita Sm lowered the target price from 31 to 29 euro, based on the worsening market prospects. SocGen has decided to reiterate the Sell recommendation and the target price of 24,50 euros.
Yoox lose 1%, Moncler 2%, Tod’s 1,9%. In Paris Hermès it leaves 1,5% on the ground, despite the good final balance. Weighs the depreciation of the yuan against the euro. The finance sector is weak. Between banks Understanding -2% Banco Popolare -2,3% UbiBanca -2% Unicredit -0,9%.
Generali loses 1,7%. The asset management sector is also weak: Anima -2,6% FinecoBank-2,2% Mediolanum -1,8%. The landslide continues Cnh Industrial, down 2%, Fiat Chrysler -1,7% Finmeccanica -0,3%.
Bucking Rcs +2,84%. Mediobanca confirmed the Outperform recommendation and the target price of 1,44 euro, arguing that the drop following the publication of the half-yearly results represents a buying opportunity. Equita was more cautious, reiterating the Hold judgment and the target of 1,30 euros.
