European stock markets flat at the start of the week. The thrust guaranteed by upward revision of IMF growth estimates for the Eurozone they were compensated for by the decline in the shares of the automotive sector, crushed by the investigations of the judiciary on the German groups. The level of the single currency, traded at 1,1664 against the dollar, weighs on the performance of the Stock Exchanges of the Old Continent. In Milan, the Ftse Mib index dropped by 0,04% around 21.200 and performed better than the others: Paris -0,10%, Frankfurt -0,55%. London retreats just under 1%.
After a start in deep red, car stocks hint at a recovery but still remain at their lowest for seven months, with an average drop of 1,87%. Fiat Chrysler reduces losses to -0,90%. Volkswagen -3,3% Peugeot , Daimler, Renault e bmw recorded decreases between 1,2 and 2,5%.
Politics also comes into play. “I advise the automotive industry to clarify things now, admit what happened, so that we can look to the future together – said Volker Kauder, right-hand man of German Chancellor Angel Merkel, in a TV interview this morning – If you read them antitrust law have actually been violated, and so much does one think that this is true, the rule of law will be enforced."
The air transport sector is also under fire. Ryanair it lost nearly 5% after warning that summer rates will take significant cuts, despite profits rising 55% in the first quarter. Also EasyJet drops around 3%, while Lufthansa drops by just over 1%.
Equity market turmoil pushes yield Waist below the psychological threshold of +0,50%. BTP 10 years at 2,04%
According to the IMF, the world economy will grow by 3,5% this year and 3,6% next, despite the slowdown in the US and the UK. The Italian GDP in 2017 will grow by +1,3% (compared to +0,8% in the previous estimate published in April) and by 1% in 2018. The euro area will grow by 1,9% in 2017 and by '1,7% in 2018. German GDP will grow this year by 1,8%, compared to +1,5% in France and +3,1% in Spain.
THEPMI index IHS Markit's composite flash in July fell to 55,8 from 56,3 in June, while remaining well above the 50 threshold that separates expansion from contraction.
Il Petroleum it is down slightly awaiting the meeting of the producing countries in St. Petersburg scheduled for today.
Spotlights on in Piazza Affari on Telecom Italy (+2,3%). Today the company's board of directors should address the issue of the departure of the managing director Flavio Cattaneo. Mediaset -0,5%.
The Swiss bank stands out in the European lists Julius Baer leads the positive stocks today with a +7,5% after a very satisfactory first half. Go back to Piazza Affari B for Bank (-2,5%), after the rejection of Kepler who cut the rating to Hold da Buy, bringing the target to 5 euros from 5,90 euros. Since the beginning of the year it has lost 9%. Down too Where's Banca (-0,5%). Intesa Sanpaolo -0,7% Bpm bank -0,8%.
In the rest of the list, Enel (-1,6%) today detaches the dividend balance by 9 cents. Luxottica +1% on council day. Campari (-0,08%) signed an agreement to sell the Carolans and Irish Mist brands to Heaven Hill Brands for 165 million dollars.
Stefanel advances among small caps (+6%): The clothing group has approved and signed a new debt restructuring and capital strengthening agreement.
Cash points on some titles not included in the main list: immsi +5,17% after the accounts. Txt e-Solutions +3,01% after the sale of the retail business.
