QE AT THE DOORS, LUXURY SPEEDS UP IN MILAN. FRANCOGEDDON HITS TOKYO AND WALL STREET
The earthquake on the exchange triggered by the Swiss franc has shaken all the financial markets. Bern's decision to renounce the policy of defending the fixed exchange rate against the euro has caused a dramatic effect, a veritable Francogeddon, which continues this morning on all Asian markets.
The yen rose, on the wave of speculative purchases in search of "safe havens". The Japanese currency gained positions against the dollar, which slipped to 115,85. As a consequence, the stock market falls: the Nikkei index reports a drop of 2,8%.
Wall Street is also weak. Berne's move was interpreted as a new sign of difficulty for the global economy, already under pressure due to the drop in commodities. The US stock markets closed down for the fifth consecutive time: Dow Jones and S&P 500 fell by 0,6%. The Nasdaq is worse -1,48%.
Meanwhile, the quarterly bank accounts are disappointing. Abrupt reverse of Blackberry -21% after the denial of negotiations for the sale to Samsung. In the hi-tech sector they are also falling back Alibaba -3,3% Apple Lossless Audio CODEC (ALAC), -2,4% and Amazon -1,9%.
Oil failed to rebound in March futures above 50 and retreated in the evening: WTI closed in New York with a further drop at 46,25 dollars (-4%), Brent lost over a dollar settling at 47,67 dollars per barrel (-2,1%).
EU EXCHANGES RUN, ZURICH FALLS
The president of the Swiss central bank, Thomas Jourdan, explained yesterday that the surprise choice of Bern was made "at the right time" because in 6 or 12 months the situation could be "much more difficult". The head of the International Monetary Fund, Christine Lagarde, echoed this from the USA, reiterating the risk that growth in the euro area "remains very low, a circumstance which can make it even more difficult to reduce unemployment and excessive public debt and private sector, increasing the risk of recession and deflation”.
But these alarm signals, in the short term, are above all the confirmation that the European Quantitative Easing is imminent and, in all probability, will be more robust than already foreseen. On the wave of this conviction, the euro's descent and the rebound of European stock exchanges gained speed yesterday.
In an undoubtedly memorable day, the franc shot up up to 39% against the single currency, slipping to 0,90 against the Swiss currency to then close just above parity at 1,030. The drop against the dollar was also heavy, down to a minimum of 1,1567, the values of 2003. The single currency then recovered up to 1,1637.
The Milan Stock Exchange closed the session with the FtseMib index up by 2,3%. In evidence Finmeccanica +3,5% and Atlantia +4,5%. The other lists were also brilliant: the Paris Stock Exchange gained 2,1%, Frankfurt +1,9%, London +1,3%.
More music in Zurich: the Smi index closed down by 8,8%. Among the main titles Swatch ended up down by 16% challenging Richemont for the black jersey of the market. Down too ubs e Credit Switzerland, both -11%, Roche 8%, Nestle -6,2%.
BTP THE NEW THIRTY-YEAR SNAPS OUT
While awaiting QE, the fall in market rates continues. The German 0,4060-year updated a new all-time low at 0,42% before closing at 132%. The spread between the BTP and the Bund closed at 1,74 basis points and the 30-year domestic rate settled at 3,291%. Of note is the full success of the new 6-year BTP, priced with a yield to maturity of 2044%, 10 basis points above the September XNUMX BTP. The operation collected orders for around XNUMX billion.
LUXURY SHINES: MONCLER AT THE TOP, LUXOTTICA RECORD
Robust and widespread increases in all sectors among the Milanese blue chips. The luxury sector deserves a special mention, also galvanized by the judgments of JP Morgan and Citigroup which promoted Moncler +5,8% / target price up from 15 to 15,5 euros, overweight opinion). Luxottica +2,16% updated the all-time high to 48,67 euros after Citigroup raised its target price from 38,5 to 50 euros (neutral) JP Morgan from 42,5 to 45 euros (neutral).
They also run Yoox +3% and Ferragamo +2,7%. Well too World Duty Free +3% which yesterday presented the new industrial plan, rose by 3%.
LEAP OF ENEL: THE DEBT STRATEGY IS LIKED
Positive day for the energy sector. Eni gained 3,70% at 14 euros, Tenaris 4% at 11,70 euros. It's an exception Saipem -1,01%: Citigroup cut its target price from 11,5 to 6 euros (sell) on news that Shell and Qatar Petroleum announced their intention to abandon the Al-Karaana petrochemical project in Qatar worth 6,4 .2,027 billion dollars. Meanwhile, the People's Bank of China reduced its stake in the company from 1,994% to XNUMX%.
Excellent upside Enel +4,1%. In a study on the utility sector, Citigroup analysts promoted the stock to Neutral from Sell with a target price falling to 3,6 euros from the previous 3,4. Yesterday, the company announced the issuance of a new 2014-year benchmark bond to be exchanged for six outstanding stocks. The new strategic plan envisages not refinancing the bonds at maturity, but repaying them using the ample liquidity available to the group also following the divestments completed by the end of 50. An operation which will make it possible to make a dent in gross debt, equal to 39 billion (2014 billion net expected at the end of XNUMX) with the reduction of debt burdens.
BANKS, INTESA LEADS THE SECTOR
No official communication from Siena on the outcome of the mission to Frankfurt by the top management of Ps +0,61%. The sector was positive, driven by the imminent Qe. The Banco Popolare rose 2,85%, Bper + 2,26% Ubi 1,66%, Mediobanca + 1,97% Unicredit +1,2%. The performance of Understanding +2,9% which has opened a short position on Telecom Italia +0,56% waiting for the Brazilian and Argentine authorities to grant approval to the demerger of the Telco holding.
