Turnaround in the afternoon for the European squares that change mood in the wake of Wall Street. The fall of the euro to a two-year low for the dollar and Draghi's words that relaunched the ECB's determination to intervene with further unconventional measures to combat low inflation were not enough: the Ftse Mib drops 1,35%, the Cac40 1,32%, the Dax 1,57% and the Ftse 100 0,99%. In London hthe declarations of the number one of the Bank of England Mark Carney also weighed for the year that the time for the rate hike is approaching.
From Berlin, the hawkish Finance Minister Schaeuble said he was against the ABS purchase plan while the market looks to the appointment with Draghi next Thursday when the meeting on rates is on the agenda and more details on the ABS plan are expected at the press conference on Dragons.
The Btp-bund spread closed on the rise at 137 basis points. The Treasury auctions did well even if the Ctz (placed 2,75 billion expiring on 30 August 2016) placed at 0,385% go back compared to the record of 0,326% at the end of August. Also assigned 497 million Btpei maturing in 2041 at 2,12% and another 966 million Btpei maturing in 2024. Still minus signs, however, for Italy: in July, the seasonally adjusted index of retail sales published by Istat recorded a slight contraction (-0,1%) compared to June. Compared to July 2013, the raw index of the total value of sales records a decrease of 1,5%.
US stocks opened down and widened the downside penalized by uncertainty about an earlier-than-expected rise in interest rates. In Rome for a conference, Falcon Fisher, president of the Dallas Federal Reserve, noted that if the recovery proceeds as expected, he could raise rates "more towards next spring than towards summer". And the data on unemployment benefits have rowed in this direction: requests have risen but less than analysts' expectations. The increase was in fact by 12 thousand units to 293 thousand against expectations for 296 thousand.
On the other hand, orders for durable goods fell by 18,2% in August. However, the figure is in line with analysts' expectations and the decline is linked to the drop in orders for commercial aircraft, which had risen significantly in July.
Equities then widened their decline on the news that Russian lawmakers are preparing rules to allow the government to seize foreign assets in Russia as a response to sanctions against the country. A move that certainly cannot make giants like Exxon, Coca Cola or McDonald's happy. In any case, the law was presented yesterday in Parliament and five steps must pass before Putin turns it into law. The Micex drops 0,4%.
The Dow Jones fell 1,24%, the S&P 1,29%, and the Nasdaq 1,68%. Sales on Apple after Cupertino retired the latest operating system (Ios 8).The euro-dollar exchange rate moved to 1,273 after three consecutive days of strengthening of the greenback and reaching a two-year low, since November 2012. WTI oil trades at 92,92 dollars a barrel (+0,14%).
In Piazza Affari, only four stocks closed positive on the Ftse Mib. Fiat +1,71% to 8,01 euros. The Ingot is back above 8 euro to the levels reached in May before the presentation of the new business plan. Finmeccanica +1,08% The Board of Directors is on the agenda today which should launch the reorganization of the subsidiaries and examine the offers for the railway activities. Bombardier could get back on track for Ansaldo Breda and Ansaldo Sts.
Bpm +0,39%. Telecom Italia closes at +0,11% after a jump of more than 3% in the morning on the rumors of new incoming investors who, led by Sol Trujillo, former CEO of Telstra and the French Orange, would aim for an offer of 7,5 billion euros for 40% of the Italian group. At the bottom of the Ftse Mib, the decline continues for Buzzi Unicem -4,52%, Moncler -4,21%, Banco Popolare -3,84%, Wdf -3,38% and Yoox -3,21%.
