The Asian stock exchanges contrasted this morning, which move in harmony with the medical bulletins on the fight against the contagion from Covid 19, which this morning also made inroads in Lombardy, in Codogno, where the first suspected case is recorded.
The Seoul Stock Exchange, the worst in the region, is down 1,3%, the won slips to its lowest since September against the dollar. The city of Daegu has been declared a special zone: the mayor has ordered the approximately 2,5 million inhabitants to stay at home and to wear masks even indoors. The Korean health authorities have reported that the confirmed cases have risen to 156.
The stock exchanges of Hong Kong (Hang Seng -0,7%) and Sydney (S&P ASX 200 -0,3%) also fell. The Tokyo Nikkei is on parity.
The Shanghai Composite, on the other hand, rises (+0,5%), while other encouraging data is arriving on the progress of the epidemic.
But the financial markets are already thinking about the aftermath, or rather about what the markets will have to do to bring the liquidity injected to deal with the emergency under control, which has also started at a time of monetary expansion to deal with the slowdown in economies. How long will this anomalous situation last, in which, for example, a Chinese company that produces windshields has obtained a substantial debt cut because it is "strategic" in the production of ambulances?
Stock exchanges will probably continue to rise until China gets back on its feet and its production structure restarts. But the defeat of the virus could be accompanied by a correction of the markets, because at that point the fundamentals would resurface as the Fed minutes suggest. Unless Donald Trump returns to the field, determined to protect the Bull until the elections of November.
US Stock Exchanges reflect these moods. The indices recorded a setback after the long series of increases: Dow Jones -0,44%, S&P500 -0,38%. NASDAQ -0,67%.
But the markets recorded a spectacular operation yesterday: Morgan Stanley, which capitalizes 88 billion dollars (much more than Goldman Sachs' rivals) acquired control of E-trade (+21,8%) the most important electronic broker of the world, in a 13 billion dollar operation.
Victoria's Secrets also changed hands for $1,1 billion, hit by inquiries into model harassment.
Oil is holding back, after eight consecutive bull sessions. Brent is down 0,8%, at 58,9 dollars a barrel. It seems that Saudi Arabia has failed to obtain the convening of an extraordinary meeting of OPEC +: therefore the expectation of an additional cut in production is no longer there.
Tenaris stock fluctuated yesterday in Piazza Affari: +2,7%, from -1,7% at the opening. The company presented disappointing quarterly data and forecasts for the first part of 2020 are cautious. Eni and Saipem rise.
The rush of gold continues, up 0,5%: this morning we are at 1.627 dollars an ounce, a new high since 2013.
EU EXCHANGES ARE HOLDING DOWN. TODAY THE PMI INDEXES
Adjustment session for the Milan Stock Exchange which, after four days at a gallop, corrects and closes down. The other lists also fell in the final stages, cooled by the ups and downs of Wall Street and the non-reassuring news arriving from Asia. The situation is improving in China, but the risk is rising in Korea and Japan where the Olympic Games will be held in not many months. For now, Europe is grappling with other problems, much less serious but profound, starting with the clash between the European Union and the United Kingdom. Meanwhile, as foreseeable, a tug of war is announced to define the new Community budget. In short, there is no shortage of reasons for caution on the eve of the Euroland PMI data, which should not bring good news. Euro dollar flat at 1,08 (-0,1%), on the lowest since 2017.
PIAZZA AFFARI KEEPS ABOVE 25 THOUSAND POINTS
The Milanese share price closed sharply after a long series of increases: -1,56%, still above the border of 25 points, at 25.080.
The other price lists were also negative: Frankfurt -0,9%, Paris -0,8%, London -0,32%. Bad Madrid (-1,49%) hit by the decline of Telefonica (-3,82%) hit by losses in Brazil and Argentina.
The battle over the next budget is raging in Brussels. "Germany is not satisfied with the current state of the negotiations because we believe that the correct balance has not been achieved between the net payers," said Angela Merkel. The budget proposal — which plans to cap common EU spending at 1,074% of the bloc's gross national product — was drafted by European Council president Charles Michel, former prime minister of Belgium, a close ally of France.
THE BUND RUNS, SPREAD ON THE RISE
The spread revises upwards due to the rush to buy the Bund, considered the safe haven asset par excellence: 137 basis points (+1,66%); the yield on the Italian 0,93-year bond is XNUMX%.
At the January 25 auction, the Treasury will offer 3,25 billion divided into Ctz (2,25 billion maturing in 2021) and Btpei (1 billion).
"INTESA'S OPS IS NOT ACCEPTABLE"
Other than blitz. The members of the Ubi syndicate pact (-1,3%), with a strong 17,8% stake, expressed themselves negatively on Intesa's offer (-1%). The Ops by Intesa Sanpaolo-Unipol "appears hostile, unacceptable, inconsistent with the implicit values of Ubi Banca and therefore unacceptable".
Carlo Messina, for his part, reiterated that no relaunch is foreseen. “This is a market operation – are his words – There are no discussions with individual investors. We will be happy if they adhere to the proposal”. Otherwise? “We will continue with the plan to deliver on our results.”
MPS AND POP SONDRIO DEFLATE
Even Banca Monte Paschi after the fireworks on the eve (+11%) goes into negative territory and closes with a drop of 3,9%. The managing director Marco Morelli is not available to renew the assignment expiring with the next budget meeting of the Sienese institute on 6 April.
Banco Bpm holds (-0,2%) after having sold all the rise in the morning, in a market that considers the Bank subject to an upcoming M&A operation. Today the CEO of Intesa said that the Ubi deal will be followed by new operations. Pop deflates. Sondrio (-5,844%) after the recent rallies.
The risk difficulties are good for Bper Banca (+1,6%) which recovers part of the ground lost due to the risk of launching a strong capital increase for the purchase of the Ubi branches.
Anima Holding +1,8% after strong results. The stock appreciated decisively yesterday and this morning while waiting for the numbers.
Azimuth -1,5%. The financial company Timone sold 2,5 million shares, equal to 1,8% of the capital, for 23,7 euros. Closing down for Nexi (-2,87%), after a rising session. Deutsche Bank has started hedging the stock with a buy and Tp rating of 21 euros per share.
DEEP RED FOR ATLANTIA
The setback of Atlantia (-2,7%) should be noted. The stock recovered from the lows after the premier said that the government would have the duty to evaluate a settlement proposal by the company.
BAD PRYSMIAN, WEAK UTILITIES
Industrialists are declining. Pirelli -0,43%: Banca Imi raised the target price from 5 to 5,3 euro, confirming the hold recommendation, after 2019 accounts and plan. Prysmian-2,55%, Ferrari -1,82%, Leonardo-1,82% and Stm -1,44%.
Utilities are also weak. Terna -1,6 after The bills. Banca Imi, MainFirst, Equita Sim and Kepler Cheuvreux confirmed the hold rating on the stock. Snam -1,3%. Enel unchanged: HSBC raised the target price to 9,5 euros, from 7,4 euros.
The luxury sector was also down, weighed down by fears relating to the spread of the coronavirus: Tod's -4,09%, B. Cucinelli -2,92%, S. Ferragamo -2,15% and Moncler -2,02% .
