Volatile stock exchanges, disoriented by the semi-festive climate: the continental lists, during the day, often change color and eventually close in red, also influenced by Wall Street which, a few hours after opening, moves into negative territory, with the of the Federal Reserve meeting which concludes tomorrow.
Milan archives this first day of November at -1,32%, with the Ftse Mib below 17.000. Still tension on Italian government bonds with the spread between Btp and Bund widening to 158 points.
More or less the same losses for the Frankfurt Stock Exchange -1,3%: according to Reuters, the group of economic advisors of the German government has lowered its 2017 growth estimates to +1,3% from +1,6%. For 2016, however, it rose to +1,9% from +1,5%. The other price lists: London -0,53%, Paris -0,86%.
Among the worst blue chips in Milan we find CNH industrial (-5,3%) and StMicroelectronics (-3,91%), due to sales after the exuberance of recent days (+20% in three sessions). Financials were weak, apart from Mediobanca (+0,67%) and Mps (+0,74%). Rocca Salimbeni's board of directors expresses "regret" for Corrado Passera's decision to withdraw his proposal. The choice of the former banker is based on "arguments that are unfounded and incompatible with the Bank's need to ensure parity of information among its potential investors and to maintain control of the information provided to them". Mps adds that it has kept the supervisory authorities (ECB and Bank of Italy, ed) constantly informed about Passera's initiative "for the assessments of competence".
Down the oil companies Eni (-1,59%), Tenaris (-1,16%) and Snam (-1,5%), but also Ferrari (-2,77%) and Fiat Chrysler Automobile (-1,05% ) on an ups and downs day for the group led by Sergio Marchionne, which communicates a 10% drop in sales in October on the American market on an annual basis, in line with expectations. At the individual brand level, the Ram Truck brand grew 12%, while Dodge fell 16%, together with Jeep (-7%) and Fiat (-24%). FCA expects margins to improve in the fourth quarter thanks to improved sales mix.
The indices on Wall Street start well, but soon turn negative weighed down by utilities (-0,5%) and the real estate sector (-0,98%). Investors are reacting to a manufacturing ISM which rose in October (to 51,9 from 51,5 in September) but less than expected (52 points) and to construction spending which fell for the second month in a row in September (-0,4% ) reaching the lows of May and disappointing analysts who were expecting a rise of 0,5%.
Contrasting quarterly results weigh on the price lists: Pfizer (-1,7%) cuts its outlook due to the halt in the development of a drug for cholesterol, while the high-end accessories brand Coach (+4,3%) has disappointing revenues but confirms the annual estimates. When it's mid-afternoon in Italy, the Dow Jones loses 0,13%; The S&P 500 lost 0,19%, the Nasdaq 0,14%. Oil in December at the Nymex marks a +0,49% to 47,09 dollars a barrel.
The euro surpasses 1,10 dollars for the first time since last October 20th. The single currency also appreciates against the pound at 0,8989 pence per euro. The British currency, on the other hand, strengthened against the dollar to a session high of 1,2280 and then settled around 1,2250.
