The Federal Reserve opens the door to the first rate cut since 2008: the dollar falls, the stock exchanges rise, gold runs and US bonds slip to the lows of 2016. Here is, in summary, the effect of the signals sent by the US central bank which has removed the adjective "patient"from his communications on rates underlining that "the uncertainties" of the macroeconomic scenario suggest preparing to act to support the economy.
First Draghi, then the Federal Reserve. Finally this morning the Bank of Japan which she left unchanged in interest rates, saying she was ready to use all the tools at her disposal to support the country's economy. The central banks, in a coordinated way, are fully engaged in the devaluation of the currency to stir up inflation and chase away the shadow of the recession while waiting for the iMeeting in Japan between Donald Trump and President Xi, today in North Korea, marks a turning point in the trade game.
FED MINUS “PATIENT”. US TEN YEAR BELOW 2%
The markets, for now, react like this.
- To signal the leap forward of gold, traded this morning at 1.383 dollars an ounce, the highest since 2014. The drop in rates favors purchases, supported by the flight from the dollar which wants a weak currency to support exports.
- La US currency drops, at 107,7 against the yen, the lowest since the beginning of 2018. The dollar/Chinese renminbi cross at 6,87, the lowest in the last month. Dollar/Korean won cross at the lows of the last month and a half at 1.165 (-1%).
- THEeuro it appreciates at 1,127 on the dollar, +0,4%. The pound is also appreciating against the dollar, at 0,788.
- The yield on the XNUMX-year Treasury Note, falls below the psychological threshold of 2%, this morning we are at 1,98%, the lowest since the end of 2016.
CHINESE BAGS IN FLIGHT, THE BOJ IS STILL FOR NOW
- The Bull is galloping in this morning Chinese bags. The Csi 300 index of Shanghai and Shenzhen gains 3,2%. Hong Kong and Australia are also up.
- La Japan Stock Exchange is starting to close up by 0,7%.
- Powell's words did not surprise i US markets. Yesterday the Dow Jones rose 0,15%, S&P500 +0,30%. NASDAQ +0,42%.
- Salt also the Petroleum Brent, up 1,5% to 62,7 dollars a barrel. U.S. Crude Inventories: Down 3,1 million barrels last week.
- A Milano opposed by Eni +0,3%. Saipem +0,8%. Tenaris -0,8%.
WEIDMANN DISCOVERS DOVE
European equities held a cautious session yesterday pending the Fed's decisions. Second Reuters at least six members of the ECB's governing council were taken aback by Mario Draghi's statements in Sintra. It seems that the president has pushed ahead independently, taking for granted, things that have never been officially discussed in the governing bodies of the central bank. But super Mario can afford it.
Today, among other things, the negotiation on European appointments is coming to life, including a first contact for the succession of Mario Draghi. Standing out among the candidates is the president of the Bundesbank, Jens Weidmann, who is trying to overcome the mistrust of southern European countries. Not surprisingly, in an interview yesterday with Time and patience, has put aside hostility to the OMT programme.
According to rumors from Brussels, it is unlikely that the EU Commission will recommend the opening of an infringement procedure against Italy for its high debt as early as next week because it first wants to wait for the measures proposed by Rome on how to comply with the rules European.
PIAZZA AFFARI AT THE TOP OF EUROPE, SPREAD AT 241
Piazza Affari was the best stock exchange with an increase of 0,41% at 21.221,38 points.
Paris is also on positive ground + 0,16%. In red Frankfurt -0,19%. In Germany, producer prices recorded a drop of 0,1% on the month in May, +1,9% on the year. The figure is below expectations, confirming the low inflation scenario.
London -0,53%. In May, UK inflation remained below the targets set by the Bank of England. Consumer prices increased by 0,3% on a monthly basis and by 2,0% on twelve months.
The BTP closed an adjustment session with little movement after the rally triggered by Draghi's words in Sintra.
- At the close, the spread was 241 basis points, with an intraday low of 234 from 243 the day before.
- The 2,12-year rate stands at 2,11%, unchanged since its inception and after closing at XNUMX% in the previous session.
- The 2-year bond also declined slightly. The thirty year anniversary is slightly positive.
- The German Bund fluctuates around -0,29% yield.
AIR OF PEACE IN TIM, PAUSE FOR UTILITIES
In Piazza Affari he holds court Telecom Italy +0,76% after a leap up to 5%. According to Bloomberg, the two main shareholders, the Elliott fund and the French media group Vivendi have found an agreement to end the war. Savings also rose, which on Monday 24 June will pay a dividend of 2,8 cents (yield 6%).
Inwit +1%, closes on the new historical record.
Profit taking on utilities: Enel -1,7% Snam -0,5%, unchanged Ivy. The board of directors authorized the issuance of bonds up to 500 million euros.
THE UNICREDIT SENIOR BOND FILLS UP
Instead, the decline in the spread helped the banks. At the head of the former Popolari: Bpm bank + 4,19 in front of Ubi +2,83% and Bper + 1,87%.
The Bigs are doing well too. Unicredit +1,8%: received orders amounting to 4,3 billion euros for the senior bond for an amount of 1,25 billion with a 6-year maturity and callable after 5 years. It is the first of its type to be issued by a European bank. Intesa Sanpaolo + 1,7%.
In the managed Azimuth + 0,7%. Anima +7%. More than 30 senior managers of the company, including the top figures, have recently purchased a total of over 290.000 shares on the market, for a value of over 780.000 euros.
MAXI ORDER FOR LEONARDO. BOOM DEBUT FOR ELES
Highlights among industrialists:
- St Microelectronics +2,3%. Morgan Stanley initiates coverage with the Overweight rating.
- Leonardo +0,5%. The 50%-owned subsidiary ATR received a $1,7 billion contract.
- Prysmian +2%, signed a 140 million euro contract for the construction of connections of new wind farms to mainland grids in Germany.
- Record debut at Aim for They +99.47%. The company is engaged in the production of microelectronics reliability testing and control equipment, mainly semiconductors,
- Cnh Industrial +1,5%. Deutsche Bank raises the judgment to Hold, the previous one was Sell.
