The disease hasn't changed that. Donald Trump returned to the White House in the evening by burning stages (against the opinion of the medical staff). The president immediately took off his mask after tweeting that “You must not be frightened by Covid. Don't let it dominate your existence. Under Trump's presidency, America has developed some excellent medicines. I feel better than twenty years ago”. This is probably not the mood of the relatives of the 209 who died from the epidemic in the USA, but the markets have welcomed the news that the experimental treatment, so far adopted only for the most serious cases, has worked.
MYOKARDIA +61% AFTER THE LANDING OF BRISTOL MYERS
The most exposed pharma stocks in the battle against the coronavirus benefited. Gilead Sciences and Regeneron, the two manufacturers of the drugs administered to Trump, closed up 2,5% and 7% yesterday. The pharmaceutical sector was one of the protagonists of yesterday's Wall Street rally. The best Dow Jones stock was Amgen +4%. MyoKardia closed up 55% following the arrival of the $13,1 billion offer from Bristol Myers Squibb. The company, which has an experimental therapy for certain heart diseases as its sole asset, was valued 61% higher than Monday night's closing price.
Together with the push from pharma, Wall Street benefited from progress in the negotiations for fiscal stimuli: Dow Jones +1,7%, S&P500 +1,8%, Nasdaq up 2,2%.
CHINA FULL OF JAPAN BOND
The open Asian lists are positive. The Chinese stock exchanges will only recover their doors on Thursday.
Tokyo's Nikkei is on track to close up 0,4%.
Of note is the sharp increase in purchases of Japanese bonds by China. The latest data shows that Beijing tripled its purchases of Japan bonds in the quarter for a total of 13,8 billion dollars. Hong Kong's Hang Seng +0,7%. Singapore Straits Times +0,7%.
The Korean Kospi also rose +0,4% on the day of the publication of the inflation data. Consumer prices rose by 1% in September from +0,7% in August, the highest figure since March. The country's central bank expects inflation of 2020% for 0,4, well below the statutory target (+2%).
INDIA REOPENS SCHOOLS
The Indian Stock Exchange rose for the sixth consecutive day, the BSE Sensex index returned to the levels of a month ago, close to the long-term highs of the end of August. The central government of New Delhi has authorized the states to proceed with the partial reopening of schools, which have been closed since March, starting from October 15: the measure affects about 270 million schoolchildren and students. India travels with 75.000 infections a day, with 6,6 million positives since the start of the pandemic.
Worth noting is the upswing in oil, today +0,7% to 41,5 dollars a barrel, from +5% yesterday at the end. Tonight the Anglo-Australian BHP announced that it has bought from Hess, a quarter of a field of about 35.000 barrels per day, located in the Gulf of Mexico. Even Caterpillar, which acquired assets in the oil & gas sector yesterday, seems to believe that hydrocarbons remain a strategic option for the global energy market. But ExxonMobil announced the cuts of 1.600 jobs in Europe to deal with the effects of the crisis
EUROPEAN STOCK EXCHANGES UP, A DUTCH IN THE ECB COMMITTEE
Positive start to the week also for the stock exchanges of the Old Continent. The EU aggregate PMI index is less worse than expected (50,4 against 51,9 in August) thanks to the rise in the German figure. Among the peripherals, Italy did well, and Spain was very bad, which saw a drop of more than 5 points in services.
Dollar weakness (Biden is seen as more unfavorable to the greenback due to fiscal spending) translated into strength for the euro but Sentix, the confidence index, fell to -8,3 points from - 8,0 in September.
In the meantime, the discussion on the disbursement of EU funds has begun in the Eurogroup but there has also been talk of the appointment of Yves Mersch's successor within the ECB Executive Council. Finance ministers have chosen Dutchman Frank Elderson to succeed Yves Mersch on the executive board of the European Central Bank, whose mandate will expire in December.
MILAN +1,06%, BUT IN THE EVENT OF SECOND WAVE GDP -10,5%
The Trump effect allowed Piazza Affari to achieve an increase of 1,06% to 19.265 points. The other markets are also positive: Frankfurt +1,1%, Paris +1%.
But the update note to the Def requires extra caution. In the event of a resumption of the pandemic with an increase in infections, hospitalizations and selective closure measures of production sectors, the drop in GDP would return to double digits: -10,5% compared to the -9% already estimated.
OILS PUSHING THE BULL: SAIPEM +4,6%
The leap forward in oil prices also pushed the price lists. Total +2,29%, Royal Dutch Shell +2,27%, BP +1,59%.
Saipem runs in Milan, gaining 4,62%, Eni + 2,97%, Tenaris + 0,99%.
BANK MERGER IN MADRID, SABADELL TOWARDS BBVA
Madrid +1,22% on the wave of bank risk. Unicaja jumped 11,1% after confirming rumors of preliminary talks for a potential merger with Liberbank +15,1%. Also in Madrid Sabadell gains 3,6% after rumors about contacts with rivals BBVA Bbva and Kutxabank, to evaluate a possible merger.
CINEWORLD COLLAPSES IN LONDON: 45 THOUSAND OUT OF WORK
Outside the euro area London +0,71%. Cineworld drops by 30,3%, following the announcement that US and UK cinemas at the world's second-largest cinema chain were closing towards the end of this week, leaving more than 45.000 workers unemployed.
The Italian secondary closed a nervous session modestly lower, with investors returning to risk, penalizing fixed income.
SPREAD AT 131, BTP AT 0,75% CLOSE TO THE MINIMUM
The Italy-Germany performance bonus is worth 131 basis points. The ten-year benchmark rate is worth 0,75% from 0,74% at the last closing. Friday had reached a new all-time low of 0,73%
It should be noted that the decline in the BTP, albeit measured, was exacerbated in the afternoon after ECB data according to which the central bank reduced purchases of Italian debt in August and September.
THE NEXI/SIA STOCK EXCHANGE AWARDS
But the news of the day was the announcement of the merger between Nexi +3,14% with Sia, which will lead to the creation of a European-level operator in the payments sector. In the new entity, Cdp Equity, which today controls Sia with around 83%, will be the largest shareholder with a stake of just over 25%. According to Equita, "the merger is positive for Nexi as it strengthens its competitive positioning and diversifies customers both by type and by geography".
THE MERGER MAKES POSTE ITALIANE FLY
As a result of this transaction, Poste Italiane, a major shareholder of both Nexi and Sia with 17%, gained 4,55%. According to Equita, the theoretical capital gain for Poste, at Nexi's current prices, is approximately 378 million. On the contrary, despite a theoretical capital gain of 140 million, Banco Bpm, another major shareholder of Nexi, fell by 3,12%.
BPER UNDER FIRE: RISING CAPITAL INCREASE
The negative note is the sharp decline of Bper -7,37% in starting day of the capital increaseand linked to the purchase of the 532 outgoing branches from Ubi (subject to delisting yesterday).
The rest of the sector was positive: Mediobanca +3,35%, Intesa San Paolo +2,56%, Unicredit +1,63%. Mps rises +1,11%, after the go-ahead from the shareholders for the spin-off of non-performing loans in favor of Amco.
DIASORIN +3,3% CELEBRATES THE VICTORY AT SAN MATTEO
In evidence Diasorin +3,31%, after last Friday the Court of the Council of State ruled in its favor and against Technogenetics' request to suspend the contract for the supply of the serological test to the San Matteo hospital. Recordati also shines +3,56%.
THE SALE OF INWIT PUSHES TIM
Tim +3,8%, after the company announced that it had finalized the sale of a 49% stake in the vehicle Daphne3, which controls 30,2% of Inwit +1,58%, to the Ardian fund.
MARR, ANIMA, GUALA: MID CAP IN FLIGHT
Also worth noting:
Among the mid caps, Marr rose +4,08%, which closed the third quarter of 2020 with revenues in line with forecasts, but recovering compared to the previous quarter.
In the asset management sector, Anima made marked progress +4,07%. The group's net inflows in September were positive by 103 million, for a total since the beginning of the year of 1,2 billion euro.
Also in the light was Guala +3,83% at 6,5 euros, promoted by the analysts of Equita Sim from hold to buy, with a target price of 7,8 euros.
LABOMAR, SPRINT FRESHMAN AT AIM
Rally by Labomar, which celebrated its debut on the Aim Italia price list with a +19,18%, at 7,15 euros.
