The tariffs catchphrase returns to unnerve the markets. European stock markets close in the red and Wall Street moves negative, in the wake of the entry into force of the new tariffs between the US and China and the cancellation of the visit to Washington by Deputy Prime Minister Liu He. A clear signal that the negotiations are at a standstill. Frankfurt closes down by 0,62%, Paris -0,33%, Madrid -0,84%, London -0,44%, Zurich -0,58%.
Piazza Affari suffers even more than the other lists, -0,91%, 21.339 points, but it is above all the spread that worries. The yield differential between 10-year BTPs and Bunds of the same duration rises by 9,13%, 242.70 basis points. The yield of the Italian benchmark is once again approaching the 3% threshold (2,94%).
To a certain extent, it was Mario Draghi who moved the government bonds of the euro area who, in the afternoon, in front of the European Parliament, defined the acceleration of core inflation as "relatively vigorous". A lexicon that sets in motion assumptions about a possible rate hike in October 2019 and even another within the year. At the same time, the euro also soared, exceeding 1,18 against the dollar, before falling back to the 1,177 area.
However, Italian paper pays a higher price in view of the month-end auctions which will start tomorrow with the placement of the Ctz March 2020 and the Btpei.
Domestic politics also plays a role, pending the update of the Economic and Financial Document with the 2019 objectives. In a tweet, Luigi Di Maio writes: "To finance its economic maneuver, France will run a deficit of 2,8% . We are a sovereign country just like France. The money is there and can finally be spent on behalf of the citizens. In Italy as in France”. The reference is to the decision of the cousins across the Alps to cut taxes by 24,8 billion euros in 2019, with an increase in the deficit/GDP ratio to 2,8%. However, the spread between French and German ten-year bonds only rose by 0,62%, to 32.40 basis points.
Oil continues its ride after the OPEC summit. Brent +2,65%, 79,92 dollars a barrel. In Piazza Affari it is precisely an “oil” stock that conquers the podium today. This is Saipem, the best blue chip of the day with an increase of 3,61%. Tenaris did well, +1,01%, while Eni -0,94% suffered from the detachment of the interim dividend. Among the best performances were Ferrari +0,9% and Poste +0,48%.
The sales hit utilities and banks, with the exception of Bper +1,15%. Italgas loses 2,45%; Terna -1,86%. Understanding -2,1%. Carige sinks, -10,71%, for fear that the lack of a short-term merger will force the bank to make a new capital increase. Prismian -2,37%.
Bad fashion. Ferragamo sells 2,05%. On Wall Street, Michael Kors is in deep red (-9%) following the rumors aboutpurchase of Versace for approximately 2 billion euros. Also on the New York Stock Exchange, Comcast pays dearly for winning the race for Sky. The American group loses more than 7% after winning the auction for the satellite TV giant with a bid of 40 billion dollars, 60% more than what had been the initial offer made by 21st Century Fox in 2016. US stocks, already weak in the morning, are worsening after the website Axios wrote that Deputy Attorney General Red Rosenstein resigned before being fired by President Donald Trump.
