CHINA AND VOLKSWAGEN DRIVE THE MARKETS. RUN IN DEEP RED. GLENCORE SINKS (-26%)
The start of the week under the banner of deep red for the financial markets which are weighed down by new fears about the Chinese economy and the dramatic automotive crisis. The Ftse Mib index closed the day with a drop of 2,72%. Paris -2,8%, Frankfurt -2,1% London -2,55% is worse. Madrid does better than all -1,15%: for now the risk of secession vanishes.
The collapse of car stocks continues, driven by the storm over Volkswagen -8% which shows no sign of diminishing intensity. Fiat Chrysler reports a drop of 4,95%. The ECB has suspended the purchase of ABS for Volkswagen: thus the financing costs for the cars of the Wolfsburg house rise. Meanwhile, Audi has admitted that there are 2,1 million cars equipped with the offending software.
Among the automotive stocks, it is worth noting the resurrection of Landi Renzo +9,59%. The Italian multinational active in LPG and methane for motor vehicles is one of the few winners in the diesel competition storm.
The abyss of Glencore's prices is frightening -26% to the City. The major commodity group pays the price for the fall in demand for metals and the price of agricultural commodities. Investment bank Investec released a report today saying that if commodity prices continue to fall, there will be little value left for Glencore shareholders.
The gold market manipulation scandal has broken out recently: the Swiss authorities have launched an investigation into seven banking giants (UBS, Julius Baer, Deutsche Bank, HSBC, Barclays Morgan Stnley and Mitsui) for manipulating prices of silver, gold and other precious metals.
The US stock market deteriorates after the release of data on the housing market, in August the purchases and sales of existing homes fell by 1,4% compared to July, the consensus was expecting a 0,4% increase. The S&P500 index loses 1,3%, the Dow Jones 1%. The new descent of technological sinks the Nasdaq -1,6%.
Market sentiment takes a turn for the worse: Apple Lossless Audio CODEC (ALAC), it is down 1,5% after announcing that new iPhones were sold like hot cakes over the weekend, 13 million were sold in the first two days, about a million more than analysts' estimates.
Going back to Piazza Affari, the banks are bad. The worst is Monte dei Paschi -6,14%: Exane analysts raised the target from 2,69 to 2,8 euros (outperform rating). Losses exceeding 5% also for Ubi. The asset management sector is under pressure. Azimut drops 5,67%, Mediolanum -4,69%.
Telecom Italia also down -1.54% crippled by the news of broken negotiations between Vodafine and Direct TV. On the other hand, Inwit rises +0,26% after the mandate to Marco Patuano to "enhance" the company of the towers. Equita Sim's analysts started covering the share with a target price of 4,9 euro (hold opinion).
The falling oil price drags down the stocks of the sector: Saipem -4,54%, Eni -3%, Tenaris -2,48. Stm and Egp are also suffering -3,38%. Atlantia +0,48% awaiting news on the sale of a stake in Adr.
