A surprise the Fed cuts rates by half a point, but the markets don't celebrate that much. Wall Street moves in the red and even the European stocks trim the day's gains.
Piazza Affari closes with a small rebound, +0,43%, 21.748 points, held back by the decline in some financial stocks. Banco Bpm collapses -8,23%. The effects of a commitment from central banks and governments, in the face of economic risks from the coronavirus, also do not positively affect the sperad, which has a final flare after falling all day. The yield of the 10-year BTP remains at 1,15% and the differential with the German Bund rises to 179 basis points (+1,98%).
In the rest of Europe Frankfurt +1,01% is livelier; Paris +1,12%; Madrid +0,77%; London +0,98%; Zurich +1,62%. Wall Street is in swings which, after yesterday's rally, starts weak, then snaps on the wings of the American central bank note, then turns red again with the words of Jorome Powell at 17 pm Italian time.
The decision, taken unanimously by the Federal Reserve, is the first outside the meetings scheduled since the 2008 financial crisis. This gives the extent of the concerns, so much so that new interventions for further stimulus in the near future are not excluded. “The fundamentals of the economy remain solid. In any case, the coronavirus poses risks to economic activity,” explains the central bank. "In light of these risks and in support of the objectives of maximum employment and price stability, the Fed has decided to cut interest rates by half a point to 1.-1,25%" and "is closely monitoring the developments and implications for the economic outlook and will use its tools and act appropriately to support the economy”. For Donald Trump, the move is right, but it is not enough. The Fed must “align itself with other countries/competitors. We are not playing evenly. It's not fair to the US. The time has finally come for the Federal Reserve to take the lead." Among central banks, the first to move overnight was the Royal Bank of Australia which cut interest rates for the fourth time this year, bringing them to 0,5%. On the tariff front, US Treasury Secretary Steven Mnuchin announced that Washington is not considering reducing tariffs on goods from China, but will examine all options as the situation evolves.
The Federal Reserve's decision is reflected in the dollar, which is losing share. The euro trades at 1,176 after briefly exceeding 1,12. Gold, already tonic, takes off at 1639,55 dollars an ounce. Oil, on the other hand, reduces the pace of its run. Brent +0,42%, 52,12 dollars a barrel.
The session of the European stock markets closed positively, even if the start had been more aggressive and full of hope in view of the meeting of finance ministers and central bankers of the G7, who said they were "ready to act" using all possible tools , including fiscal stimulus measures, but without references to immediate and concrete measures ready to become effective.
Italy, which is the weakest link in the chain and is currently one of the countries most affected by the Covid-19 epidemic, is trying to face a thousand problems, including the stop to goods. The Farnesina is asking to lift the lockdowns imposed due to the coronavirus epidemic, says the
Foreign Minister Luigi Di Maio. This attitude is unacceptable, he argues, as well as "having countries that in these hours are asking for stamps of guarantee" on products from the boot.
In this context, the final balance of Piazza Affari sees Poste Italiane earnings +3,87%; Amplifon +3,64%; Daisorin +2,93; Stm +2,76%. utilities remain well tuned: Snam +2,45%; Enel +2%.
The losses hit the banks, which also started with the turbo in the morning. The worst is Banco Bpm, after the presentation of the 2023 business plan. Perhaps disappointing is the lack of news on the merger front. During the call with analysts, the CEO Giuseppe Castagna, regarding a possible countermove in response to the ops by Intesa Sanpaolo (-0,82%) on Ubi (-0,48%), said: “ I don't think I have to answer to anyone, we have our own roadmap on a standalone basis." The bank, he added, would like to take part in a possible consolidation scenario, but only in transactions between peers, excluding being the subject of hostile transactions.
Unicredit leaves 4,24% on the ground; Bper -2,35%. Pirelli -2,10% in other sectors; Unipol -1,84%; Telecom -1,75%; Saipem -1,45%. Atlantia loses 1%, after a marked upward start; yesterday Moody's downgraded Atlantia and Autostrade to Ba3 with negative prospects.
