Weekend of turbulence from the East. Yesterday North Korea launched a long-range rocket and the UN convened an emergency meeting of the Security Council. American pressure is increasing on China to impose new penalties on the allied country. Which for Beijing, which has resisted up to now, could have repercussions on Chinese banks and companies that do business with Pyongyang. Meanwhile, still on the Chinese front, another battle continues: the currency one.
CHINA, FOREIGN EXCHANGE RESERVES AT A THREE-YEAR LOW
BAG CLOSED FOR NEW YEAR'S EVE
The figure on foreign exchange reserves was in January at its lowest since 2012, marking a new drop of 99,5 billion to 3.230. China continues to sell dollars to shore up its currency and curb capital outflows triggered by fears about an economic slowdown and falling stock prices. However, this is a less sharp drop than expected. But today the Chinese New Year (year of the monkey) begins with the financial markets also closed for the holidays. Between today and February 12, both Shanghai and Hong Kong will be closed and no publications of market movers or latest news on economic performance in China and Hong Kong are expected.
Chinese New Year is also celebrated in Korea, Mongolia, Nepal, Bhutan, Vietnam and Japan. Here, however, the Stock Exchange will only be closed on Thursday 11 February, the day of the National Foundation.
EUROPE, WATCH OUT FOR INDUSTRIAL PRODUCTION AND BANKS
The Nikkei closed up 1,1% this morning on the back of the current account surplus. WTI oil is up 0,97%, to 31,19 dollars a barrel, while the euro-dollar exchange rate is down 0,19%, to 1,1137, after the single currency returned to a year high . Now we are looking at the opening of the European Piazzas and Piazza Affari after a week in which it lost 7,5%, bringing the performance from the beginning of the year to -19%, the worst Stock Exchange in Europe.
The publication of data on industrial production in Spain and Germany in December is scheduled. On the corporate front, keep an eye on the data of the banks: Bpm, Credem, Creval, FinecoBank but also Enel Green Power and Yoox Net-à-Porter.
Meanwhile, on Friday the Treasury announced that in mid-February, in the absence of specific cash requirements, there will be no quarterly bond auctions, only 12-month BOTs. In particular, the new BoT expiring on 14/2/2017 will be on offer for an amount of 6,5 billion. On the settlement date of 12 February next, twelve-month BoTs for 7,7 billion are due.
